How American Tower Is Expected to Benefit from Tax Reform

Donald Trump’s Tax Cut and Jobs Act is expected to have positive effects on the entire telecom industry. Its enactment has brought down tax rates to 21% from 35% and allows companies to repatriate overseas cash by paying a one-time tax of 15.5% instead of 35%. In the first quarter, American Tower’s (AMT) income tax benefit rose YoY (year-over-year) to $31.3 million from $27 million. American Tower anticipates a $10 million tax reduction in 2018, which could boost its consolidated adjusted funds from operations.