Budget 2024 Update to the Alternative Minimum Tax

Budget 2024 introduced amendments to the Alternative Minimum Tax (AMT) calculation originally proposed in Budget 2023. Budget 2024 will allow 80 per cent of charitable donations to be excluded from the AMT tax base (up from the originally proposed 50 per cent). It will also allow certain new deductions and credits and certain previously disallowed credits to be eligible for the AMT carry-forward. In addition, it will include AMT exemptions for Employee Ownership Trusts and certain trusts for the benefit of Indigenous Groups.

The amendments are assumed to have been in effect as of January 1, 2024.

The Parliamentary Budget Officer (PBO) estimates a decrease of $598 million in income tax revenues from 2023-24 to 2027-28.