US Inflation Reduction Act includes 15% corporate minimum tax on book income

The new tax will require companies to compute two separate calculations for federal income tax purposes and pay the greater of the new minimum tax or their regular tax liability.

To determine whether the new tax applies, companies must first ascertain whether their "average annual adjusted financial statement income" (AFSI) exceeds $1 billion for any three consecutive years preceding the tax year.

Affected companies must make several adjustments to AFSI when determining the new tax.

The Act limits …