CEG · 10-Q · 2026Q2 · Full report
CAMT Tax Regulatory Change
Constellation Energy Corp · 2026-08-06 · Importance 47 · Surprise 60 · In source text
The IRS issued Notice 2026-7 in February 2026 addressing implementation of the corporate alternative minimum tax (CAMT). The Notice permits deductions for repair and maintenance costs when calculating adjusted financial statement income and applies retroactively to previously filed returns. Exelon amended its 2023 and 2024 tax returns, reducing CAMT and the utilization of previously refunded tax attributes; Constellation remitted $[amount not disclosed] million to Exelon in March 2026 and increased its receivable for future utilization of those attributes.
Key facts
- In February 2026, the IRS issued Notice 2026-7 providing guidance on CAMT implementation and permitting taxpayers to deduct repair and maintenance costs under tax law principles retroactively to previously filed returns. source
- We received a demand letter from Exelon in February 2026 and remitted an amount to Exelon under the TMA in March 2026 related to prior periods (amount shown in filing). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | probable | — | In February 2026, the IRS issued Notice 2026-7 providing guidance on CAMT implementation and permitting taxpayers to deduct repair and… |
| cash | positive | probable | — | In February 2026, the IRS issued Notice 2026-7 providing guidance on CAMT implementation and permitting taxpayers to deduct repair and… |