lutz logo
lutz logo
  • Services
  • News & Insights
  • About
  • Client Portal
Search
  • Services
  • Accounting
  • Consulting
  • Financial
  • M&A
  • Talent
  • Tech
  • Accounting Services
Services
  • Audit & Assurance
  • Employee Benefit Plans
  • Client Advisory Services
  • Outsourced Accounting
  • Tax
  • State & Local Tax
View All
Industries
  • Agribusiness
  • Construction
  • Family Office
  • Healthcare
  • Manufacturing & Distribution
  • Nonprofit
View All
News & Insights
Website Featured Content Images-2
Blog
Are You Prepared? Financial Access Checklist for Spouses

Share this checklist with your spouse to assure you each have access to manage important financial tasks independently.

Read More
  • Consulting Services
Services
  • Business Valuation
  • Healthcare Consulting
  • Internal Control Assessment
  • Litigation Support & Forensic
  • Risk Assessment
View All
Resources
Website Featured Content Images (1)-1
Guide
What is a Comprehensive Risk Assessment?

To start managing your business's risk, you will need to conduct a comprehensive risk assessment.

Read More
Business Insights
Website Featured Content Images (2)-1
Blog
Top 3 Financial KPIs Every Business Owner Should Track

Key Performance Indicators (KPIs) can help illustrate your business’s financial health and show whether your business will turn a profit.

Read More
  • Financial Services
Services
  • Financial Planning
  • Investment Advisory
  • Retirement Plan Services
  • Pooled Employer 401(k) Plan
View All
Resources
  • Lutz Financial Blog
  • Our Team
  • Client Portal
  • Charles Schwab Login
  • Send Files Securely
Contact Us
NEWS & INSIGHTS
Website Featured Content Images
MARKET COMMENTARY
Financial Market Updates

Want to receive financial market updates straight to your inbox? Sign up below!

Subscribe
  • M&A Services
Services
  • Sell-Side Representation
  • Transaction Advisory
  • Exit Planning
View All
Resources
Website Featured Content Images (3)
Ebook
7 Factors to Consider Before Selling Your Business

We give you exclusive insights on the business sale transaction process to help you answer seven important questions.

Read More
Business Insights
Website Featured Content Images (5)
Blog
Key Items to Review During Financial Due Diligence
The due diligence phase is critical for a Buyer to better understand the Target’s business operations and the overall quality of the financial information.
Read More
  • Talent Services
Services
  • Search & Staffing
  • Outsourced HR
  • HR Strategy & Coaching
  • HR Consulting
View All
Candidate Resources
  • Job Seeker Process
  • Current Opportunities
  • Lutz Internships
Contact Us
News & Insights
Website Featured Content Images-3
Blog
5 Benefits of Using Gallup's CliftonStrengths in Your Company

Gallup’s CliftonStrengths assessment can help you identify the strengths of the people working in your teams.

Read More
  • Tech Services
Services
  • Data Analytics & Insights
  • Outsourced IT
  • Technology Strategy
  • Software Consulting
View All
Resources
Website Featured Content Images (1)-2
Guide
Introducing Data Analytics into Your Business

Integrating data analytics into your business can help your revenue grow, the organization mitigate risk, or gain insight into your business operations.

Read More
Business Insights
Website Featured Content Images (2)-2
Blog
17 Tech Tips & Tricks

We’ve listed 17 shortcuts and hacks that will help you use tech to your advantage and make your daily life a little easier.

Read More
Business Insights
BLOG
Explore Topics

Get the latest news and insights on relevant topics that matter most to you.

View All
Webinars & Events
Events
Register Today

Register for an upcoming event or access our library of on-demand recordings.

View All
Lutz Talk Business
PODCAST
Tune In

Subscribe today for entrepreneurially spirited episodes of witty commentary for young professionals.

View All
Resources
EBOOKS & GUIDES
Download Now

Take a deep dive into challenging business topics with these free educational resources. 

View All
  • News & Insights
  • Business Insights
  • Webinars & Events
  • Lutz Talk Business
  • Resources
Business Insights
BLOG
Explore Topics

Get the latest news and insights on relevant topics that matter most to you.

View All
  • About
About

Lutz is a business solutions firm for people seeking a partner to help energize and heighten economic and organizational success.

Our Company
Our Team
Offices
Careers
Internships
Contact Us
  • Contact
Client Portal

Log in to your relevant client portal to access your account, upload documents, or make a payment.

Make a Payment
Accounting Client Portal
Financial Client Portal
Charles Schwab Login
Send Files Securely
Contact Us
  • Recent News

Inflation Reduction Act of 2022

August 19, 2022
Inflation Reduction Act of 2022

Below are the major tax provisions contained within the Inflation Reduction Act signed into law on August 16th, 2022. Of particular note are increased tax credits for residential energy credits, electric vehicles, used “clean” vehicle credit, and modification of the energy efficient commercial building deduction.

 

Corporate Tax Provisions:

New 15% Corporate Alternative (“Book”) Minimum Tax (12/31/22)

  • Only about 150 companies expected to be impacted
  • Applies if the average adjusted financial statement net income for the past three years exceeds $1 billion (aggregation rules apply)
  • Effective for tax years beginning after 12/31/2022

New 1% excise tax on the repurchase of corporate stock (12/31/22)

  • Impacts “covered” corporations whose stock traded on an established security market
  • Applies to the fair market value of stock repurchased during the entire tax year
  • Exceptions for tax-free reorganizations, repurchases of $1 million or less, ESOPs, RICs, REITs, dividends

 

Individual Tax Provisions:

Excess Business Losses

  • Extended two more years, now expires for tax years ending before 1/1/2029

Affordable Care Act – Premium Tax Credit (PTC)

  • American Rescue Plan Act (ARPA) beneficial rules extended to apply for 2023-2025 (Increased PTC credits and availability to families over 400% of the poverty line)

 

IRS Funding:

~$80 billion in total, with $45 billion for enforcement and $25 billion for operations support. Treasury Department officials have said they do not plan to increase audits on small businesses or households making under $400,000 a year.

 

Highlighted Energy Tax Credits and Deductions:  

Nonbusiness energy property credit (12/31/22)

  • Credit increased from 10% to 30% of the amount paid by the taxpayer for qualified energy efficiency improvements (doors, windows, skylights, insulation, heat pumps, water heaters, furnaces, water boilers, etc.)
  • Repeals $500-lifetime limit and now has a $1,200 annual limitation instead

Residential energy efficient property credit (12/31/22)

  • Increases credit for qualified expenditures made by a taxpayer for residential energy efficient property (solar electric, solar water heating, fuel cell, small wind energy, geothermal heat pump, biomass fuel, and battery storage technology)

Energy efficient commercial building deduction (section 179D) (12/31/22)

  • Now uses an applicable dollar value (ADV) multiplication formula to calculate a potentially higher deduction amount

New qualified plug-in electric drive motor vehicles credit (12/31/22)

  • Credit amount - $3,750 for meeting the critical minerals requirement and $3,750 for meeting the battery component requirement. AGI limitations apply.
  • Repeals manufacturer limitations so additional vehicles qualify (such as Telsa and GM)

Credit for previously owned “clean” vehicles (12/31/22)

  • Possible credit Amount – lesser of $4,000 or the amount equal to 30% of the sale price with respect to such vehicle. AGI limitations apply.

 

Extension/modification of other existing energy credits:

  • Renewable electricity production credit (12/31/21)
  • Energy investment tax credit (12/31/21)
  • Increase in energy credit for solar and wind facilities placed in service in connection with low-income communities (1/1/2023)
  • Carbon oxide sequestration credit (12/31/22)
  • Biodiesel, renewable diesel, and alternative fuels credits (12/31/21)
  • Energy efficient home credit (12/31/2022)
  • Alternative fuel vehicle refueling property credit (12/31/21)

Other new energy credits:

  • Zero-emission nuclear power production credit (12/31/23)
  • Sustainable aviation fuel credit (12/31/22)
  • Clean hydrogen production credit
  • Qualified commercial clean vehicle credit (12/31/22)
  • Advanced manufacturing production credit (12/31/22)
  • Clean electricity production credit (12/31/24)
  • Clean electricity investment credit (12/31/24)
  • Clean fuel production credit (12/31/24)

The Inflation Reduction Act of 2022 has created many new tax provisions that could affect your organization. Please contact us or reach out to your tax advisor if you have any questions.

Recent News & Insights

Market Commentary
What Happened to the Recession of 2023? + Market Update + 9.19.23
The consensus view from economists entering 2023 was that the U.S. would likely be in a ...
Read More
M&A
Lutz adds Robert Powell to Omaha Office
Lutz, a Nebraska-based business solutions firm, recently added Robert Powell to its Omaha ...
Read More
Accounting
Lutz adds Kinney, Krause, and Wolf as Client Resource Assistants
Lutz, a Nebraska-based business solutions firm, recently added Samantha Kinney, Shelby Krause, ...
Read More
Accounting
Proposed CMS Lump Sum Payment to 340B Hospitals
The Centers for Medicare and Medicaid Services (CMS) is proposing a $9 billion lump sum ...
Read More
module-bg-desktop module-bg-mobile

Let’s get you where you want to go.

We work to simplify complexities, help make critical business decisions, and confidently focus on the things that are truly important to you. We embrace your business as our own to spark the right solutions and help you thrive.
Contact Us
Lutz-Logo-white
  • Services
    • Accounting
    • Consulting
    • Financial
    • M&A
    • Talent
    • Tech
  • About
    • Our Company
    • Our Team
    • Offices
    • Careers
    • Internships
    • Current Opportunities
  • Client Portal
    • Make a Payment
    • Accounting Client Portal
    • Financial Client Portal
    • Send Files Securely
    Submit RFP
TOLL-FREE: 866.577.0780 | © Lutz & company, PC 2023 | Privacy Policy
Follow us on Facebook Follow us on LinkedIn Follow us on Twitter Follow us on Instagram Follow us on Facebook