A corporation with a minimum tax credit carryover may reduce regular tax down to the amount of its tentative minimum tax when its regular tax exceeds its tentative minimum tax.

Question

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This is correct according to the rules of the U.S. tax code. The minimum tax credit carryover is designed to help corporations that have paid the alternative minimum tax (AMT) in previous years to reduce their regular tax liability when it exceeds the tentative minimum tax. This allows them to avoid paying more than their fair share of taxes.

A Corporation with a Minimum Tax Credit Carryover May Reduce