The Inflation Reduction Act (IRA) signed by President Biden Aug. 16 includes a variety of
tax provisions that will impact U.S. businesses and individuals. While some of the changes have
received a great deal of media attention, other may come as a surprise to those who have not
been following the legislative process closely. Generally, the changes implemented in the IRA fall into one of eight broad categories:
· Extending the health insurance premium tax credit provisions of the American Rescue Plan Act of 2021 through 2025
· Changing the tax credits for electricity produced from some renewable resources, the energy tax credit and certain fuels
· Extending state and local tax (SALT) limitations
· Adding research credit flexibility
· Extending excess business losses (EBLs)
· Increasing IRS appropriations by $80 billion to improve taxpayer services, increase enforcement and fund other activities
· Establishing a 15% corporate alternative minimum tax
· Imposing a 1% excise tax on corporate stock repurchases
Each of these provisions in the IRA are discussed in more detail in the sections that follow.
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