Alternative Minimum Tax

Chapter 2.1 of Part 10 of Division 2 deals with the alternative minimum tax under the California Personal Income Tax Law.

Section 17062 provides that, in addition to the other taxes imposed by this part, there is imposed for each taxable year, a tax equal to the excess, if any, of the tentative minimum tax for the taxable year, over the regular tax for the taxable year. Also, three specifies rules apply.

Section 17062.1 states that Part VI of Subchapter A of Chapter 1 of Subtitle A of the Internal Revenue Code, relating to alternative minimum tax, as it read on January 1, 2015, applies.

Section 17062.3 states that Section 56A of the Internal Revenue Code, relating to adjusted financial statement income, applies.

Section 17062.5 states that Section 55(b)(3) of the Internal Revenue Code, relating to maximum rate of tax on net capital gain of noncorporate taxpayers, applies.

Section 17063 explains that there is allowed as a credit against the net tax for any taxable year an amount equal to the minimum tax credit for that taxable year. The minimum tax credit is determined in accordance with Section 53 of the Internal Revenue Code, except as otherwise provided in this part. The amount determined under Section 53(c)(1) of the Internal Revenue Code is the regular tax as defined, reduced by the sum of the credits allowable under this part, other than two specified credits.