With Senate passage of the Inflation Reduction Act, the legislation is expected to pass the House and go to President Biden for signature by the end of the week.
Included within the act are the following major revenue raising provisions:
- A 15 percent minimum tax on corporate book income for corporations with profits over $1 billion, effective for tax years beginning after December 31, 2022;
- A 1% excise tax on stock repurchases by publicly traded US corporations, effective for repurchases of stock after December 31, 2022;
- $80 billion funding to the IRS to increase enforcement; and
- An extension of the excess business loss rules under Section 461(l), which limits the amount of losses an individual of a flow through entity can deduct, by two additional years. This provision is now scheduled to expire at the end of 2028.
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