IRS Issues Notice 2026-7 Providing Long-Awaited CAMT Relief for OB3’s R&E Catch-Up Adjustment and More-Widely Available Repairs Adjustment Among Other Taxpayer Favorable Updates

On February 18, 2026, Notice 2026-7, 2026-11 I.R.B. 1 (Notice), was issued to offer comprehensive guidance to taxpayers concerning the implementation of the corporate alternative minimum tax (CAMT). Regarding a taxpayer’s applicable financial statement income (AFSI), which forms the basis for calculating the CAMT, the Notice introduces an AFSI adjustment that accounts for deductible tax repair costs, Section 197 amortization related to certain intangibles, and notably, the amortization of... By: Eversheds Sutherland (US) LLP