Document Type

Article

Publication Date

3-2023

Subject: LCSH

Tax incentives--United States, Tax planning--United States, Energy consumption

Disciplines

Accounting

Abstract

The Inflation Reduction Act of2022 (the "Act"), signed by President Biden on 8/16/2022, contained an array of tax provisions that should be considered in tax planning for clients.

The Act is a budget reconciliation bill whose origins can be traced back to the American Rescue Plan Act of2021, as well as the American Jobs Plan (AJP) and the American Families Plan (AFP). Each plan contained aspects of tax incentives for green energy construction, conservation, and infrastructure improvements, as well as for healthcare benefits. What we see in the Act is the last iteration of these developing tax incentives.

The Act is a scaled-down version, and immediate successor, to the Build Back Better Act which passed in the House of Representatives in 2021 but failed to pass in the Senate. It incorporates and enlarges on many of the tax provisions in the Build Back Better Act related to energy efficiency and healthcare.

Comments

This article was originally published in, "Practical Tax Strategies," and is used with the permission of Thomson Reuters.

Publisher Citation

Goldberg, M. A. & Mohs, J. N. (2023). Tax planning under the Inflation Reduction Act of 2022. Practical Tax Strategies, 110(3), 4–8.

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Accounting Commons

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