Inflation Reduction Act 2022

02 Nov 2022

What The Inflation Reduction Act Means For You

The Inflation Reduction Act, which includes expanded or extended tax credits and additional funding for the IRS, was signed into law on August 16, 2022.

How could the Inflation Reduction Act impact you when filing your next tax return?

Below is a simplified summary of how the Inflation Reduction Act may affect you.

Health Care

The Inflation Reduction Act includes:

Extension of Affordable Care Act (ACA) funding through 2025. This funding, which was due to expire at the end of 2022, will allow consumers to continue to buy insurance with lower premiums through the Health Insurance Marketplace (also referred to as the Marketplace or the Exchange).
Extension of the American Rescue Plan Act (ARPA) temporary exception that allows taxpayers with incomes above 400 percent of the Federal Poverty Level to qualify for the Premium Tax Credit.

Energy Efficient Home Improvement Credit

Written by National Taxpayer Advocate | Posted in Inflation Reduction Act 2022

13 Oct 2022

Inflation Reduction Act of 2022: Transforming 179D And 45L (Complimentary Online CPE)

Topic: Inflation Reduction Act of 2022: Transforming 179D and 45L

Time: Nov 9, 2022 12:00 PM in Eastern Time (US and Canada)
REGISTER HERE

Description

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.

Learning Objectives:
* 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

Course Outline:

Written by Bruce Johnson | Posted in 179D Deduction • Free CPE For Tax Professionals • Inflation Reduction Act 2022 • Section 45L Tax Credit

22 Sep 2022

Corporate Tax Revenue Raisers In The Inflation Reduction Act

In case you did not read the previous post from Annette Nellen, we want to point out the Corporate Revenue Raisers in the Inflation Reduction Act.
TaxConnections Editor

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On August 16 President Biden signed the Inflation Reduction Act of 2022 (P.L. 117-169; H.R. 5376). This was enacted via the budget reconciliation process so only 51 votes were needed to pass this in the Senate. And there are various restrictions on what can go in the bill and it can’t lose revenue in the 11th year out and beyond. So the numerous energy credits added or expanded in this law generally end expire 12/31/32. And this law’s official name is “an act to provide for reconciliation pursuant to title II of S. Con. Res. 14” due to the required process (has to have the word reconciliation in it). The unofficial name that you’ll hear is Inflation Reduction Act of 2022 or IRA (which might be confusing).

Single-spaced, this act is 273 pages with 128 pages – or 47% related to tax law changes (these are in Title I of the Act but a lot of these pages are in Subtitle B on prescription drug pricing reform (which tax-wise only includes a minor change to IRC §223 on health savings accounts and a new drug excise tax at §5000D).

The Corporate Revenue Raisers

Written by Annette Nellen | Posted in Inflation Reduction Act 2022

14 Sep 2022

Inflation Reduction Act Signed Into Law, Extends And Expands Energy-Efficient Tax Incentives

EPAct 179D and 45L have been part of the tax code since 2006. The Inflation Reduction Act of 2022 (IRA) was signed into law August 16, 2022. The Act includes several major updates to federal energy-efficiency tax incentives that may be of interest to Capstan clients. The following provisions take effect 1/1/2023, unless otherwise indicated.

EPAct 179D Tax Deduction

Created as part of the Energy Policy Act of 2005, the EPAct 179D tax deduction was made permanent by the Consolidated Appropriations Act of 2021 (CAA). The federal deduction may be applied to ground-up energy-efficient construction projects as well as to energy-efficient retrofits. 179D applies to all types of energy-efficient commercial buildings (EECB) and to residential rental buildings that are a minimum of four stories high.

Clauses in the IRA will increase and expand the utility of 179D as follows:

Written by Bruce Johnson | Posted in Energy Efficient Tax Incentives • Inflation Reduction Act

09 Aug 2022

Inflation Reduction Act 2022: Winners And Losers

MYTH vs FACT: Tax Title of the “Inflation Reduction Act of 2022”
Democrats claim the latest version of their tax-and-spend bill, the mislabeled “Inflation Reduction Act of 2022,” will ensure the wealthiest Americans and corporations pay their “fair share” by closing tax loopholes and boosting IRS funding, all without raising taxes on anyone making less than $400,000 per year. However, analyses from nonpartisan experts show the legislation would raise taxes on low- and middle-income Americans during a period
of declining GDP and high inflation; raise taxes on manufacturers, exacerbating supply-chain disruptions, and costing U.S. jobs and investment; and do little to nothing to lower inflation.

“The more this bill is analyzed by impartial experts, the more we can see Democrats are trying to sell the American people a bill of goods,” said U.S. Senate Finance Committee Ranking Member Mike Crapo. “Non-partisan analysts are confirming this bill raises taxes on the middle class, raises taxes on manufacturers, and produces no
meaningful deficit reduction when gimmicks are removed and the full cost is accounted for.”

IRS FUNDING

Written by TaxConnections Admin | Posted in Inflation Reduction Act 2022 • Joint Committee On Taxation