President Biden on August 16 signed into law the Inflation Reduction Act of 2022, the roughly $740 billion tax-and-spending package that includes a new book-minimum tax on certain large corporations, an excise tax on stock buybacks, a significant funding boost for IRS enforcement efforts, and a long-term extension of the Superfund excise tax, plus incentives to address climate change mitigation and clean energy and provisions to promote health care affordability.
The Inflation Reduction Act moved through Congress under fast-track budget reconciliation rules that allowed Democratic leaders to avert certain procedural hurdles in the Senate and essentially obviated the need for Republican support—a dynamic that was reflected in the final vote tallies. The measure cleared the Senate on August 7 by a margin of 51-50, with all 50 Democrats aligned in the “aye” column, all 50 Republicans voting “no,” and Vice President Kamala Harris breaking the tie. It was approved in the House on August 12 by a strict party-line vote of 220-207.
Find out more
For an overview of the key tax provisions in the Inflation Reduction Act, see Tax News & Views, Vol. 23, No. 29, Aug. 12, 2022.
Detailed discussions of the following issues related to the new law are also available from Deloitte Tax LLP:
We’ll provide links to additional resources as they become available.
Legislative session resumes after Labor Day
Congress is now in recess until after Labor Day. The Senate is scheduled to be back in session on September 6 and the House returns on September 13. Barring any significant, unexpected developments on the tax policy front, the next regular edition of Tax News & Views will be published the week of September 5.
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