Updates to form instructions for taxable year 2025 relating to credit for prior year alternative minimum taxPublic Service Bulletin 26.02

February 13, 2026

Purpose of bulletin

To inform taxpayers FTB has updated form line instructions for computing the credit for prior year alternative minimum tax (referred to as the "minimum tax credit").

Previously, the line instructions for the minimum tax credit required taxpayers to reduce their prior year alternative minimum tax (AMT) with the credits taxpayers used to lower their prior year AMT. The updated form line instructions no longer require that reduction.

Background

FTB deleted the following sentence in Schedule P (100) Instructions, Specific Line Instructions, Part III, Line 1 instruction:

    If this amount was reduced by any credits from Part II, Section C, use the AMT from the 2024 Schedule P (100), Section C, line 18.

FTB deleted the following sentence in Schedule P (100W) Instructions, Specific Line Instructions, Part III, Line 1 instruction:

    If this amount was reduced by any credits from Part II, Section C, use the AMT from the 2024 Schedule P (100W), Section C, line 18.

FTB also deleted the following sentences in FTB 3510 Instructions, Specific Line Instructions, line 28 instruction:

    Line 28 – Reduce the amount on line 28 by the same amount shown on one of the forms below if you reduced your 2024 AMT by any solar energy credit carryover or commercial solar energy credit carryover:
    • Schedule P (540), Part III, line 23 and line 24, column (b).
    • Schedule P (540NR), Part III, line 23 and line 24, column (b).
    • Schedule P (541), Part IV, line 18 and line 19, column (b).

    Write the amount of the reduction in the space to the left of line 28.

Additional information

With these line instruction changes, corporate taxpayers generally compute the minimum tax credit available by adding their prior year AMT and their prior year unused minimum tax credit carryover.

Individual and fiduciary taxpayers generally compute the minimum tax credit in the same manner to the extent the amount of AMT was attributable to deferral preferences.

Taxpayer inquiries

For more information and forms go to Forms and publications.

Last updated: 02/20/2026