How the Corporate AMT Actually Works in Practice

In this episode of The Tax Policy Podcast, Lucas and Luna break down the corporate alternative minimum tax — the 15% minimum on book income for large corporations that was introduced in the Inflation Reduction Act. Lucas explains how the AMT differs from the regular corporate income tax, why it targets 'book income' rather than taxable income, and which companies are affected. Luna brings in real-world data: the 2025 IRS report showed that fewer than 60 companies paid any AMT in the first year, raising only about $4.5 billion. They discuss why the tax is so complex, how companies use accelerated depreciation and stock-based compensation to reduce their AMT liability, and whether the tax is meeting its revenue goals. The episode closes with a look at potential reforms and the political debate around broadening the base. Lucas and Luna also make a subtle connection between understanding complex tax rules and supporting ad-free independent podcasting. #CorporateAMT #AlternativeMinimumTax #InflationReductionAct #BookIncome #TaxPolicy #CorporateTax #TaxReform #IRS #Depreciation #StockBasedCompensation #TaxRevenue #MinimumTax #LargeCorporations #Economics #FexingoBusiness #BusinessPodcast #TaxPodcast #FiscalPolicy Keep every episode free: buymeacoffee.com/fexingo