The Inflation Reduction Act, enacted in August 2022, significantly changed the qualifications for and calculation of the tax credit available for the purchase of an alternative fuel vehicle (electric and fuel cell vehicles). The Act created the Clean Vehicle Credit with one provision effective upon enactment and the remaining provisions phased in beginning in 2023. As a result of enactment, many vehicles that previously qualified for the credit earlier in 2022 no longer qualify. Significant changes and their effective dates are discussed below. (more…)
Microcaptive Insurance Plans: Questionable Transactions Draw IRS Scrutiny
Many businesses form wholly owned captive insurance companies for legitimate risk management purposes and to take advantage of potential tax savings. Unfortunately, some promoters of so-called “microcaptive” schemes have run afoul of the IRS by helping businesses set up captive insurers solely to evade federal income taxes.
If your business is considering forming a microcaptive insurance company to reduce its tax burden, you should consult with a qualified, objective tax professional before taking any action. The penalties for illegal tax-avoidance schemes can be severe, and the IRS has been quite successful in pursuing such cases in recent years. (more…)
Inflation Reduction Act of 2022
In early August 2022, a reduced version of the Biden Administration’s tax reform, climate change, green energy, and social policy agenda was passed by both the House and Senate. On August 16, 2022, President Biden signed the $750 billion Inflation Reduction Act of 2022 into law. The numerous changes will require significant guidance from multiple federal agencies to implement. With one exception, the Act’s provisions will be effective beginning January 1, 2023. We have summarized some of the key provisions below, and as guidance is released, will continue to keep you updated on how the Inflation Reduction Act may affect you or your business. (more…)
Employee Retention Tax Credit – Be Cautious and Do Your Due Diligence
Although most COVID-19 relief programs have expired, many taxpayers are still sorting through lingering questions about their eligibility for various credits and grants. One such program, the Employee Retention Tax Credit (ERTC), has attracted particular attention in recent months.
The rules governing the ERTC are complex, and some eligible employers might not realize they qualify. Your company certainly should take advantage of tax credits for which it is eligible, and the ERTC was indeed a lifesaver for many businesses. (more…)
Governor Newsom Signs Budget Act of 2022
On June 30, 2022, California Governor Gavin Newsom signed a $308 billion budget package (Budget Act of 2022), which includes a direct tax refund for qualifying taxpayers. We have outlined some of the key tax related highlights from the budget, below. We will continue to keep you updated as we learn more about how the provisions in the budget may affect you or your business. (more…)
How to Use Smart Technologies Smartly
In response to buyer and tenant expectations, many owners and developers are now regularly incorporating smart technologies in their projects. But buyers and tenants understandably also have expectations regarding cybersecurity measures. The risks are real, but they can be significantly reduced with forethought and vigilance. (more…)
IRS Information Returns - Filing Changes on the Horizon?
If your company is among the millions of businesses that still file paper versions of tax information returns such as Form W-2 and the various types of Form 1099, proposed new regulations from the IRS could soon affect you. The agency has proposed new regulations that would greatly expand the number of employers who are required to file these documents electronically rather than on paper.
The new rules are still subject to revision and the IRS has not yet officially announced when they will take effect. When they were first unveiled, however, the agency said it wanted to implement them by the end of this year. Companies that are still filing paper W-2s and 1099s should consider transitioning soon. (more…)
California Competes Tax Credit and Grants – 2022 Update
The state’s popular California Competes Tax Credit program continues to be available during the 2022-2023 fiscal year. The state has allocated approximately $304 million in California Competes Tax Credits and a total of $120 million in California Competes Grant funding. (more…)
Humanitarian Design in Architecture – Fighting Climate Change, Promoting Community, and Fostering Energy Efficiency
By Guest Writer, Maverick Esser, with an Introduction by Steve Carter, CPA, Assurance & Advisor Principal
ASL Renewable Energy Group
For some reason, I found myself really struggling with finding an interesting topic for this edition of the ASL Advisor. I was hoping to somehow discover a timely topic that impacts us all, yet offers some form of viable solutions to the critical, if not dire, challenges facing our global environment.
In one of my Managerial Accounting classes at Santa Clara University, I was fortunate to have an extremely bright and talented young student who is looking at our world with a unique vision of practicality. In addition, even more exciting and hope raising, he is finding ways to put solutions into action! (more…)