On Sunday, August 7, 2022, the U.S. Senate passed the Inflation Reduction Act of 2022. The legislation contains significant tax savings including, but not limited to:
- Providing significant incentives for individuals and businesses to become more energy efficient by extending, increasing, and expanding credits generally applicable for post-2022 purchases for:
- Purchasing clean fuel vehicles (both new and used);
- Making their homes more energy efficient (rebates are also available for qualified expenses incurred by qualified individuals and entities);
- Making commercial buildings and residences more energy efficient;
- Building/manufacturing more energy-efficient homes; and
- Producing clean energy and fuels;
- Increasing the Research Credit against payroll taxes for qualified small businesses for post-2022 tax years;
- Extending the current Premium Tax Credit amounts available to taxpayers who purchase health insurance on state health care exchanges for an additional three years; and
- Limiting and capping various costs Medicare recipients will have to pay for prescription drugs and certain premiums and co-pays, as well as providing free vaccines.
- Increasing IRS funding for audits and compliance initiatives;
- Imposing a 1% excise tax on certain stock repurchases, applicable to post-2022 stock repurchases; and
- Imposing a new 15% corporate minimum tax on corporations with average financial statement income over $1 billion per year, beginning with the 2023 tax year.