Inflation Reduction Act of 2022: Transforming 179D and 45L
Time: Nov 9, 2022 12:00 PM in Eastern Time (US and Canada) REGISTER HERE
The passage of the Inflation Reduction Act of 2022 (IRA) has transformed energy-efficient tax incentives for commercial real estate. The IRA will alter and amplify both the 179D Deduction and the Section 45L Tax Credit. In this all-new webinar, we will compare the current version of each incentive to the “IRA Version” of the incentive, addressing changes to reference standards, calculation of incentives, documentation procedures, and more. New exciting initiatives including utility sales tax recovery, C-PACE, and more will also be discussed. Numerous real-life case studies will be reviewed, and a variety of reference tables will be provided.
* Compare the requirements for claiming the 179D deduction under both the old and new laws
* Understand how the 179D deduction is calculated under the Legacy Program and under the IRA
* Recognize other changes to 179D under the IRA, including the elimination of partial deductions and the establishment of deduction reset
* Compare the requirements for claiming the 45L Tax Credit under both the old and new laws, and the associated differences for single-family and multifamily dwelling units
* Become familiar with solar energy incentives, the benchmarking process, and C-PACE
* Learn about NYC’s new Carbon Emissions Bill, and recognize potential implications in New York and beyond
Hegar v. Tex. Westmoreland Coal Co., Case 21-1007 (Tex. Sept. 30, 2022)—In this case, the Texas Supreme Court denied the Comptroller’s petition for review, leaving the decision of the Third Court of Appeals in favor of the taxpayer in place. The Court of Appeals had held that equipment used to break apart lignite coal from a coal formation qualified for the manufacturing exemption from sales and use tax. The Court of Appeals disregarded the Comptroller’s argument that the manufacturing exemption didn’t apply because the equipment was used on real property to create tangible personal property, holding that there was no basis in the statute for any requirement that an input to the manufacturing process had to be tangible personal property.
Citgo Petroleum Corporation v. Hegar, 21-0997 (Tex. Sept. 30, 2022)—The Texas Supreme Court denied the taxpayer’s petition for review in this case, so the decision of the Third Court of Appeals in favor of the Comptroller remains the law of the land. The Court of Appeals had held that only the net proceeds of sales of commodity futures contracts and options on commodity futures contracts could be included in the calculation of the taxpayer’s apportionment factor for purpose of calculating Texas franchise tax.
The session will begin with a brief overview of the credit, highlighting its utility in a plethora of industries, and addressing credit benefits, limitations, and timing. The presenter will then walk through the Four-Part Test, using real-life examples to illustrate what types of research meet eligibility criteria. The four types of Qualified Research Expenses will be explained, and the presenter will review the associated information-gathering process. Discussion will then pivot to credit flow and utilization, including the Eligible Small Business Provision, and a variety of scenarios will be presented.
• List multiple industries that may be engaged in R&D Credit-eligible research
• Explain the eligibility criteria that compose the Four-Part Test
• Name the four types of Qualified Research Expenses
• Identify good candidates for R&D Tax Credit studies
• Understand credit flow in S-corps and C-corps
• Understand credit utilization and the Eligible Small Business Provision
Over the next several weeks we will post five blogs that should interest any taxpayer who is in fear of a sales and use tax audit – especially an audit that results in a “huge, unexpected liability.” […]
The IRS released a Strategic Operating Plan (SOP) outlining how it intends to use the nearly $80 billion in additional funding received as part of the Inflation Reduction Act of 2022 (IRA) to improve […]