115-97, repealed the AMT for C corporations for tax years 2018 and following and, for individuals in tax years 2018 through 2025, increased the
AMT exemption amount and the exemption's phaseout threshold.)
While corporate AMT has been eliminated and the individual
AMT exemption has been, at least temporarily, significantly increased, IRC section 55(d)(1)(D) has remained unchanged, leaving the statutory
AMT exemption amount for estates and trusts at $22,500 and the statutory exemption phaseout threshold amount at $75,000 of AMT income.
Eliminates the Alternative Minimum Tax (AMT) for corporations and increases the
AMT exemption amounts and phase-out thresholds for individuals.
Taxpayers in the 35% bracket benefit the most because of the phase-out of the
AMT exemption amount and the interaction of the deductions eliminated, AMTI, and exemption phase-out.
ABC will continue to qualify for the
AMT exemption in 2009 and later years if the average gross receipts for the previous three years (or portion thereof) do not exceed $7.5 million (Sec.
For years, Congress has increased the
AMT exemption amount with a series of "patches." Without these increases, the exemption would have been lower and more taxpayers would owe the AMT.
The
AMT exemption for 2012 is $78,750 (married, filing jointly); $50,600 for unmarried persons (single or head of household); and $39,375 for married, filing separately.
(22) Over the past decade, Congress had regularly enacted temporary increases of the
AMT exemption amount to adjust for inflation and allowed nonrefundable personal tax credits to reduce AMT tax liability (these policies are often known as the AMT "patch").