# Prop. Treas. Reg. § 1.56A-7: AFSI adjustments with respect to effectively connected income.

Proposed regulation, not in force. REG-112129-23, 89 FR 75062, published 2024-09-13 <https://www.federalregister.gov/documents/2024/09/13/2024-20089/corporate-alternative-minimum-tax-applicable-after-2022>. Interprets 26 U.S.C. § 56A.

Par. 9. Sections 1.56A-0 through 1.56A-27 are added to read as follows:

(a) Overview. This section provides rules under section 56A of the Code for determining the AFSI of a foreign corporation engaged in (or treated as engaged in) a trade or business within the United States. Paragraph (b) of this section provides rules under section 56A(c)(4) of the Code for determining a foreign corporation's AFSI. Paragraph (c) of this section provides the applicability date of this section.

(b) Adjusted financial statement income of foreign corporations. A foreign corporation determines its AFSI by applying the principles of section 882 of the Code. The AFSI of a foreign corporation is adjusted to take into account only amounts and items of FSI that would be included in income effectively connected with the conduct of a trade or business within the United States or allowable as a deduction by such corporation for purposes of section 882(c) had such amount or item accrued for regular tax purposes in the taxable year.

(c) Applicability date. This section applies to taxable years of foreign corporations ending after September 13, 2024.