NAC704.6542. Alternative minimum tax.

     1. The Commission hereby adopts by reference sections 53, “Credit for Prior Year Minimum Tax Liability,” and 55, “Alternative Minimum Tax Imposed,” of the Internal Revenue Code, 26 U.S.C. §§ 53 and 55, as amended.

     2. For the purposes of rate making, incurrence of a minimum tax must not be included in the determination of income tax expense for the cost of service.

     3. When establishing the net-to-gross multiplier, the income tax rate to be used is the statutory rate by reference to section 11 of the Internal Revenue Code, 26 U.S.C. § 11, as amended.

     4. Since the amount paid as minimum tax in any one year can be carried forward as a credit against future years’ income tax liabilities, the actual amount paid must be recorded as prepaid tax and included in the cash working capital component of rate base.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)