Congressional passage of the Inflation Reduction Act took everyone by surprise, and tax professionals all over the U.S. are fielding calls from clients and employers anxious to know what it means for them. After all, the bill’s passage marked a dramatic reversal of fortune for elements of the proposed but long-stalled Build Back Better Act. While the measure’s actual power to reduce inflation is in question, its tax implications are immediate. A bill that raises $700 billion in revenue over 10 years is certain to cause major repercussions while harboring hidden surprises.
Corporations and other taxpayers expect their finance and accounting professionals to have the answers, making this the ideal time to apply continuing professional education credits toward learning the details of this complex act.
Surgent’s first-to-market CPE course covers the IRA’s new tax provisions in detail, equipping participants to properly advise their individual and business clients if and how the tax changes impact their tax planning.
The upshot of the IRA
The Inflation Reduction Act would raise its $700 billion in revenue over 10 years through:
- A 15% minimum tax on income reported to shareholders – so-called “book income” – by large corporations with profits higher than $1 billion. The AICPA has expressed concerns about basing tax liability on the nontax criterion ascribed to book income.
- A 1% excise tax on companies’ stock buybacks.
The spending side also creates tax implications:
- About $370 billion meant to fight climate change includes incentives for energy efficiency, clean energy and clean vehicles.
- In addition to the government’s new powers to negotiate the prices of certain prescription drugs under Medicare, beneficiaries will now have a $2,000 cap on out-of-pocket prescription costs.
- $45.6 billion to beef up IRS enforcement.
- Enhanced federal premium subsidies for Obamacare coverage are extended by one year, through 2025.
IR22 covers the major topics
Clearly, major tax changes are in order, and it’s time to become familiar with their terms. Surgent’s Summary and Analysis of the Inflation Reduction Act of 2022 (IR22) course covers the sweeping provisions of the IRA, including:
- The 15% corporate tax
- 1% tax on the repurchase of corporate stock
- Enhancement of IRS services
- Prescription drug pricing reform, including drug price negotiation
- Maximum out-of-pocket cap for Medicare beneficiaries
- Extension of Affordable Care Act subsidies for certain individuals whose household income exceeds 400% of the poverty line
- Clean energy and efficiency incentives for individuals
- Energy Efficient Home Improvement Credit
- Energy Efficient Commercial Buildings Deduction (Section 179D)
- Extensions, increases, and modifications of the New Energy Efficient Home Credit
- Clean Vehicle Credit and credit for previously owned clean vehicles
- Qualified Commercial Clean Vehicles
- Transfers of certain credits to an unrelated transferee
- Increase in Research Credit against payroll tax for small businesses
A deep dive into a teeming pool
With Summary and Analysis of the Inflation Reduction Act of 2022 (IR22), you’re the first to know and comprehend this brand-new, multi-faceted tax act. Other courses skim the surface, providing the same broad-stroke highlights you can find in any news story or online summary. With this course, your CPE investment delivers the highest ROI, as Surgent’s expert panelists detail every relevant facet applicable to planning for both you and your clients.
Our course will help you become familiar with all aspects of the Inflation Reduction Act and help you advise clients regarding individual and business planning related to this new legislation.
Are you ready to get up-to-date on the latest tax implications of the Inflation Reduction Act? Surgent CPE offers everything you need to know about the new legislation. Our new course will premiere on Aug. 16 with additional dates to follow. Register today for this first-to-market course on the Inflation Reduction Act.