An association representing housing professionals this week expressed strong support for two American Bankers Association recommendations on how to reduce the compliance burden of the corporate alternative minimum tax on banks.
The CAMT was created by the passage of the Inflation Reduction Act in 2022 and generally imposes a 15% minimum tax on certain corporations. The Treasury Department and IRS last year proposed simplifying some Biden-era regulations implementing the tax while rescinding others.
Among the groups weighing in on the changes is the Affordable Housing Tax Credit Coalition, which is comprised of organizations and individuals who advocate for affordable housing financed using the Low-Income Housing Tax Credit. In a letter to the IRS, the coalition supported ABA’s recommendation that the agencies provide an alternative “top-down election” under which the “top-down amount” equals the partner’s book income from investments made under the equity method of accounting, including the proportional amortization method.
AHTCC also supported ABA’s recommendation that the agencies expand the “taxable income election” to investments in tax equity partnerships, regardless of the value of the investment or the investor’s ownership interest.
“We share the goal of streamlining the administration of the CAMT to reduce unnecessary compliance burdens, and respectfully urge you to incorporate the recommendations discussed above in a manner that supports continued public-private investment through the housing credit,” the coalition said.
