The Inflation Reduction Act has moved a step closer to being passed in the U.S. Senate.
Sen. Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WV) have agreed to a pared down package of provisions once part of the larger Build Back Better Act. Tax-wise, the bill would impose a 15% minimum tax on corporations with profits over $1 billion, raising $313 billion over a decade. Companies could claim net operating losses and tax credits against the 15%. The bill also aims to close the so-called “carried interest loophole.” Eliminating the loophole is estimated to raise $14 billion. In addition, the bill aims to raise an estimated $124 billion through increased IRS funding for stronger tax enforcement.
Contact one of our experts for any questions regarding the Inflation Reduction Act.