The Small Business Jobs Act of 2010 made beneficial changes to the application of general business credits toward tax and AMT liability offsets. (P.L. 111-240)
General business credits of eligible small businesses not subject to AMT for 2010. Under the AMT, taxpayers can generally only claim allowable general business credits against their regular tax liability, and only to the extent that their regular tax liability exceeds their AMT liability. A few credits, such as the credit for small business employee health insurance expenses, can be used to offset AMT liability. The Small Business Jobs Act allows eligible small businesses to use all types of general business credits to offset their AMT in tax years beginning in 2010. (Source for this information: © 2010 Thomson Reuters/RIA. All rights reserved.)
If you are unsure of how your general business credits can be used to offset your tax or AMT liability, contact your CPA.