Despite opposition from the business community, Congress recently approved and President Joe Biden signed the $740 billion budget reconciliation bill — called the Inflation Reduction Act of 2022. The new law includes a 15% corporate minimum tax, government price controls on prescription drugs, and massive new federal spending for climate-related programs and IRS enforcement. Multiple OMA Connections Partners have published summaries of the legislation, providing the following insight:

• Barnes Denning: The bill increases the amount of the research tax credit that may be applied against the payroll tax liabilities of certain small businesses.
• CliftonLarsonAllen: The law includes a less-publicized tax increase on business owners operating as a sole proprietor or pass-through entity (i.e., entities taxed as partnerships, S corporations, or LLCs) by imposing a limit on excess business losses.
• Plante Moran: The legislation includes impactful tax changes, but the delayed effective dates for most changes provide taxpayers with at least four months to evaluate these rules and determine appropriate next steps.
• Schneider Downs: The carried interest provision desired by most Democrats was eliminated and was replaced with a provision calling for a 1% excise tax incurred on corporate stock repurchases, with the tax set to go into effect in 2023.
• Shumaker, Loop & Kendrick: The bill will be the largest climate investment in U.S. history by raising $739 billion in revenue over the next 10 years.

OMA Connections Partner RSM has posted this on-demand webinar — with accompanying slides — to provide an overview of the legislation’s tax provisions. 8/15/2022