Since the 2017 Tax Cuts and Jobs Act (TCJA) put a limit on itemized deductions for state and local taxes (SALT), states with relatively high tax rates have been looking for ways to work around the limit. One widely used approach can lessen the impact of the SALT deduction cap for some taxpayers, but it also creates complications for businesses. (more…)
Inflation Reduction Act: Energy-Related Tax Incentives
Although its official name is the Inflation Reduction Act of 2022, this wide-ranging tax and spending measure that was signed into law in August might be more accurately described as an energy-related tax incentives act. The new law, commonly referred to as the IRA, contains more than $270 billion in energy- and climate-related tax incentives, including 11 new programs to encourage businesses and individuals to produce and use clean or renewable energy. It also extends or expands another 14 energy-related tax incentives. (more…)