The U.S. Department of the Treasury and the Internal Revenue Service have released new guidance on the Corporate Alternative Minimum Tax (CAMT). The aim is to reduce compliance requirements and provide clearer rules for businesses affected by this tax, which was introduced during the Biden administration.
Secretary of the Treasury Scott Bessent commented on the measure, stating: “Democrats’ CAMT regime is a flawed, partisan experiment hatched in the minds of liberal academics who lacked practical experience. In the real world, CAMT disrupted productive business activities and added undue costs, while failing to deliver on promised tax revenues.” He continued, “President Trump’s Treasury Department will continue to restore sanity to tax administration, using its authority to provide clarity and to keep bureaucracy out of the way of job growth and investment.”
Officials noted that under previous Democratic leadership, CAMT led to higher administrative expenses for companies—even when they did not owe any additional taxes—and created obstacles for firms hiring or investing within the United States. Since President Trump assumed office, Treasury has worked within its Congressional mandate to clarify CAMT regulations and prevent unnecessary barriers for innovation and employment.
The latest guidance will allow Treasury to propose a revised regulatory framework for CAMT. This process is expected to incorporate feedback from stakeholders so that final rules are more predictable and manageable for businesses.
