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Department of Taxation and Finance

Minimum tax credit

Effective for tax years beginning on or after January 1, 2015, the minimum tax credit is repealed and you may not claim any carryover of this credit.

You are entitled to this nonrefundable credit if:

  • the tax due on your business this year is based on the entire net income (ENI) base, and 
  • your tax in a prior year was based on the minimum taxable income (MTI) base.

How much is the credit?

  • The minimum tax credit is the amount, if any that the adjusted minimum tax imposed for all prior tax periods beginning after 1989 exceeds the amount allowed as a minimum tax credit in prior years. The credit is designed to prevent the double taxation that might otherwise arise because of the inclusion of timing items of tax preference and adjustment in both the MTI and ENI bases but in different tax years.

For additional information on claiming this credit, see: