Warren Warns Treasury Against Minimum Tax Carveout for Research

The Treasury Department should resist calls from business groups and GOP lawmakers to weaken the Biden-era minimum tax for large corporations, Democratic tax writers told the agency.

Republicans in their mega tax law enacted in July allowed companies to immediately deduct from their taxes the cost of their research and development this year — a major priority for GOP lawmakers and large corporations.

But those same companies’ research and development expenses may drive their tax rate low enough that the corporate alternative minimum tax may kick in. That includes “catch-up” adjustments to deduct past R&D costs they haven’t yet been ...