Corporation AMT(alternative minimum tax)

A corporation is likely to pay an AMT for one or more of these reasons:

1. A high level of investment in assets such as equipment and structures.
2. Low taxable income due to a cyclical downturn, strong international competition, a low-margin industry, or other factors.
3. Investment at low real interest rates, which increases the company's deductions for depreciation relative to those for interest payments.