S. 796Senate119th Congress (2025-2027)In Committee

Book Minimum Tax Repeal Act

AI-Generated Summary

Updated November 24, 2025 at 2:19 AM UTC

The Book Minimum Tax Repeal Act eliminates the corporate alternative minimum tax, leaving the AMT only for individuals. It revises the tax code to calculate the tentative minimum tax for individuals while treating corporations as having a zero AMT liability. The bill also updates numerous related provisions to align with this change, and the new rules apply to tax years starting after 2024.

Key Provisions

Removes the corporate alternative minimum tax (AMT) by amending Section 55 so that only non‑corporate taxpayers are subject to the AMT.
Defines the tentative minimum tax for individuals (26% on the first $175,000 of taxable excess and 28% on any amount above that) and clarifies how it is calculated.
Specifies that corporations are treated as having a tentative minimum tax of zero, effectively eliminating the corporate AMT liability.
Updates a series of related code sections (e.g., §§ 11, 12, 53, 56A, 59, 860E, 882, 897, 6425, 6655) to conform to the removal of the corporate AMT.
Sets the changes to take effect for taxable years beginning after December 31, 2024.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text: CR S1431)

Finance Committee

February 27, 2025

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SenateIntro Referral

Introduced in Senate

February 27, 2025

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text: CR S1431)

Finance Committee

February 27, 2025

Floor Debate

3 members

What members said about S. 796 on the floor

1 Republican2 Democrats

Sen. Alex PadillaD-CA · Feb 27, 2025

Mr. President, I rise to introduce the bipartisan Early Action and Responsiveness Lifts Youth Minds Act. This legislation would increase access to early intervention and prevention initiatives in…

Mr. President, I rise to introduce the bipartisan Early Action and Responsiveness Lifts Youth Minds Act. This legislation would increase access to early intervention and prevention initiatives in children's mental health.

Our bipartisan bill would allow States to use up to 5 percent of their community mental health services block grant funding for prevention and early intervention activties. The community mental health services block grant, MHBG, administered by the Substance Abuse and Mental Health Services Administration, is currently limited to funding services for those with severe, diagnosed mental illnesses.

The bill would also require the U.S. Department of Health and Human Services, HHS, to provide reports to Congress detailing States' efforts to promote early intervention. HHS would report to Congress every 2 years regarding States' efforts to promote early intervention, including comprehensive information on activities undertaken and outcomes achieved.

Over 20 percent of youth have reported seriously considering suicide in the previous year, with 18 percent having developed a suicide plan, which is one of the most significant risk factors that precipitates an actual attempt. Over 40 percent of teens reported persistent feelings of sadness or hopelessness, with a shocking 57 percent of girls reporting this. These statistics regarding suicidality and hopelessness are considerably poorer than ten years ago. The evidence is clear: There is a youth mental health crisis, and it is getting worse. Yet many of these youth in distress do not yet have a diagnosed mental health condition, meaning that MHBG funds can't be used to help them and prevent their symptoms from worsening.

Research shows that intervening early with people who are experiencing mental health challenges can help prevent those challenges from turning more serious--and more costly to treat.

States should have the flexibility to use up to 5 percent of mental health block grant funds for prevention and early intervention activities if they so choose. Without this adjustment, the mental health block grant is missing a valuable opportunity to intervene early and save lives.

I would like to thank Senators Tillis, Kaine, and Murkowski for co- leading this legislation, and I look forward to working with my colleagues to enact this bill as soon as possible.

Sen. John BarrassoR-WY · Feb 27, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Sen. Richard J. DurbinD-IL · Feb 27, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued February 27, 2025

119th CONGRESS

1st Session

S. 796

IN THE SENATE OF THE UNITED STATES

February 27, 2025

Mr. Barrasso (for himself, Mr. Crapo, Mr. Lankford, Mr. Cassidy, Mr. Daines, Mrs. Blackburn, Mr. Ricketts, Mr. Risch, and Ms. Lummis) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to repeal the corporate alternative minimum tax.

Short title

This Act may be cited as the Book Minimum Tax Repeal Act.

Repeal of corporate alternative minimum tax

(a)

In general

Section 55 of the Internal Revenue Code of 1986 is amended—

(1)

in subsection (a)—

(A)

by striking There and inserting In the case of a taxpayer other than a corporation, there, and

(B)

by striking plus, in the case of an applicable corporation, the tax imposed by section 59A in paragraph (2), and

(2)

by striking subsection (b) and inserting the following:

(b)

Tentative minimum tax

(1)

Amount of tentative minimum tax

(A)

In general

The tentative minimum tax for the taxable year is the sum of—

(i)

26 percent of so much of the taxable excess as does not exceed $175,000, plus

(ii)

28 percent of so much of the taxable excess as exceeds $175,000.

The amount determined under the preceding sentence shall be reduced by the alternative minimum tax foreign tax credit for the taxable year.

(B)

Taxable excess

For purposes of this subsection, the term taxable excess means so much of the alternative minimum taxable income for the taxable year as exceeds the exemption amount.

(C)

Married individual filing separate return

In the case of a married individual filing a separate return, subparagraph (A) shall be applied by substituting 50 percent of the dollar amount otherwise applicable under clause (i) and clause (ii) thereof. For purposes of the preceding sentence, marital status shall be determined under section 7703.

(2)

Alternative minimum taxable income

The term alternative minimum taxable income means the taxable income of the taxpayer for the taxable year—

(A)

determined with the adjustments provided in section 56 and section 58, and

(B)

increased by the amount of the items of tax preference described in section 57.

If a taxpayer is subject to the regular tax, such taxpayer shall be subject to the tax imposed by this section (and, if the regular tax is determined by reference to an amount other than taxable income, such amount shall be treated as the taxable income of such taxpayer for purposes of the preceding sentence).

(b)

Application to general business credit

Section 38(c)(6)(E) of the Internal Revenue Code of 1986 is amended to read as follows:

(E)

Corporations

In the case of a corporation, this subsection shall be applied by treating the corporation as having a tentative minimum tax of zero.

(c)

Conforming amendments

(1)

Section 11(d) of the Internal Revenue Code of 1986 is amended by striking the taxes imposed by subsection (a) and section 55 and inserting the tax imposed by subsection (a).

(2)

Section 12 of such Code is amended by striking paragraph (5).

(3)

Section 53 of such Code is amended by striking subsection (e).

(4)

Part VI of subchapter A of chapter 1 of such Code is amended by striking section 56A (and the item related to such section in the table of sections for such part).

(5)

Section 59 of such Code is amended by striking subsections (k) and (l).

(6)

Section 860E(a)(4) of such Code is amended by striking section 55(b)(1)(D) and inserting section 55(b)(2).

(7)

Section 882(a)(1) of such Code is amended by , 55,.

(8)

Section 897(a)(2)(A)(i) of such Code is amended by striking section 55(b)(1)(D) and inserting section 55(b)(2).

(9)

Section 6425(c)(1)(A) of such Code is amended by striking clause (ii) and by redesignating clause (iii) as clause (ii).

(10)

Section 6655(e)(2) of such Code is amended by striking , adjusted financial statement income (as defined in section 56A) each place it appears in subparagraphs (A)(i) and (B)(i).

(11)

Section 6655(g)(1)(A) of such Code is amended by striking clause (ii) and by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.