Updated tax alert looks at financial reporting implications of recent tax legislation

Two measures that President Biden recently signed into law include significant tax provisions. The CHIPS Act (P.L. 117-167), enacted on August 9, creates an advanced manufacturing tax credit under new Internal Revenue Code section 48D. The Inflation Reduction Act of 2022 (P.L. 117-169), the roughly $740 billion budget reconciliation package enacted on August 16, includes, among other things, a new book-minimum tax on certain large corporations, an excise tax on stock buybacks, and a host of incentives to promote clean energy and energy efficiency.

A recently updated tax alert from Deloitte Tax LLP considers the financial reporting implications of the new laws.

Additional Inflation Reduction Act resources available

For details on all the tax provisions in the Inflation Reduction Act, see Tax News & Views, Vol. 23, No. 28, Aug. 7, 2022. Another recent Deloitte publication provides an overview of tax and nontax provisions in the new law and their potential impact on the federal budget.

Previously issued tax alerts on the Inflation Reduction Act address the book-minimum tax, the stock buyback excise tax, the clean-energy tax provisions, and state tax considerations.

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