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Weekend edition August 19, 2022 | Kailyn Lamb

PYA provides insights on tax implications in Inflation Reduction Act

By Kailyn Lamb, Marketing Content Writer and Editor, PYA

PYA thought leaders recently released a high-level summary of some of the tax implications of the recently passed Inflation Reduction Act of 2022. The act is intended to help move Americans more toward reliance on energy-sustainable solutions. Originally called the Build Back Better Act, this bill provides both funding and an array of measures such as prescription drug reform and green energy credits.

The PYA insight provided an in-depth look at three tax implications from the bill: the corporate alternative minimum tax, the stock repurchase excise tax, and green energy credits. The article describes when the alternative minimum tax is trigged and states that the threshold for the income test is set at $1 billion for all corporations treated as a single employer. It also notes that only 110 corporations are expected to meet this criterion.

In taxable transactions post-2022, a 1 percent excise tax has been imposed on the fair market value of any stock traded on an established securities market and then repurchased by a corporation during the tax year.

Finally, the insight details different energy credit opportunities for homes and electric vehicle buyers.

Read the full insight here.

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