Overview
The Inflation Reduction Act (IRA) contained certain provisions relating to businesses that tax practitioners should know about in order to advise their clients. Certain changes, such as the alternative minimum tax and the stock buyback 1% tax currently apply to a very small number of very large businesses and as such are not a priority for tax practitioners that do not have such clients. Other changes relating to certain energy credits and deductions relating to energy efficiency are applicable to many businesses. These critical changes will be covered in detail in this program.
Major Topics:
- Brief outline of the new alternative minimum tax and the 1% tax on corporate stock buybacks
- Increase in the research credit
- Extension of the Section 461(l) loss limitation
- Discussion of the unchanged rules relating to carried interest
- The IRA’s two-tier “base” rate and “increased” rate structure for renewable energy tax credits
- Credit for purchasing a qualified commercial clean vehicle
- Restrictions imposed on electric vehicle manufacturers
- Section 179(d): changes relating to the energy-efficient commercial building deduction
- Section 45(l): changes relating to the energy efficient home credit
- Transferring energy credits for auto purchases to dealers
- Purchase/sale of credits
- Expansion of subsidies for climate-friendly agriculture
- Changes to bonus depreciation after 2022
Learning Objectives
- Advise business clients on implementing tax planning strategies
this year
Designed for:
Tax practitioners who anticipate advising business clients regarding strategies to reduce or eliminate federal income taxes
Prerequisite:
A basic understanding of the tax rules relating to individual income tax
Advanced Preparation:
None