Congress OKs credit for AMT liability. (alternative minimum tax)

National Underwriter Life & Health-Financial Services Edition, December, 1989 by Brostoff, Steven

Congress OKs Credit For AMT Liability

Washington--Business groups scored a major victory in the budget reconciliation debate when Congress agreed to permit a complete credit for the excess of alternative minimum tax liability over regular tax liability.

This means that if in 1990 an insurer has a regular tax liability of $5 and an AMT liability of $8, the insurer must pay the AMT, according to Stephen W. Broadie, assistant vice president in the Washington office of the Alliance of American Insurers, Schaumburg, Ill.

However, the $3 difference can be used as a credit, so that if in 1991, the same insurer has a regular tax liability of $8 and an AMT of $5, the insurer need pay only the $5 AMT. The credit cannot be used to reduce a company's tax...

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