For Form 1120-H, unlike C Corporation Form 1120, the AMT does not apply. The Assn.can choose which form to file every year. Would the muni bond interest received by the Assn. on these bonds therefor be tax free if the Assn files 1120-H since a tax law repealed the the AMT for both small and large corporations filing this form.
Tax rate on 1120-H is flat 30%.