From CalTax.org, the State BOE has ruled that taxpayers may use Enterprise Zone tax credits to reduce Alternative Minimum Tax:

Taxpayers can use enterprise zone tax credits to reduce the alternative minimum tax, the State Board of Equalization ruled by a 4-1 vote on the marquee case on the agenda at its February 25-26 meeting in Culver City. While the issue was presented to the board in the Appeal of Nassco Holdings, Inc., the underlying fight was between the Franchise Tax Board and former Assembly Speaker Willie L. Brown Jr. In 1993, Speaker Brown introduced AB 57 to allow taxpayers to use enterprise zones below the AMT. Former Governor Pete Wilson signed the bill into law.The Senate analysis of the bill said enterprise zone credits could be used to reduce the AMT, as did the legislative counsel.Representing the taxpayer, Jon Sperring of PricewaterhouseCoopers said the FTB was denying the benefit to the very taxpayers the Legislature was trying to help. At issue were five years of disallowed credits totaling more than $2 million. Also making arguments on behalf of the taxpayer was Gail Morse.FTB attorney William Gardner argued that the language of the statute did not allow the credits to be used to reduce the AMT.Board Member Bill Leonard, who was a member of the Legislature when the legislation passed, said the bill was known as the “Taco Bell bill” and its purpose was to allow credits to offset the AMT. He urged the board to use legislative intent in deciding the case.Voting to support the taxpayers’ position were Dr. Judy Chu, Mr. Leonard, Michelle Steel and Marcy Jo Mandel, for Controller John Chiang. Board Member Betty Yee voted “no” on the issue.