In financial modeling, we do not often consider the United States’ Alternative Minimum Tax (“AMT”). We do so here only to expose you to the maximum complexity you will likely encounter in modeling taxes. The AMT is a parallel tax system designed to ensure that all taxpayers pay at least some minimum amount of tax. The 20% corporate AMT tax rate and 90% minimum taxable income offset are features of the AMT promulgated by the IRS. State and local taxes are deductible for the purpose of computing AMT.