08/24/2022

The Inflation Reduction Act Includes Wide-ranging Tax Provisions

Understanding its implications for your organization

Recently, President Joe Biden signed the Inflation Reduction Act (IRA) into law on August 16, 2022. The IRA includes significant provisions related to climate change, healthcare, and, of course, taxes. The IRA also addresses the federal budget deficit. According to the Congressional Budget Office (CBO), the IRA is projected to reduce the deficit by around $90 billion over the next 10 years.

Although the IRA falls far short of Biden’s originally proposed $2 trillion Build Back Better Act, it is, nonetheless, a sprawling piece of legislation bound to affect most Americans over time. Here is an overview of some of what the bill includes.

Significant tax provisions

For starters, how is the federal government going to pay for all of it? Not surprisingly, new taxes are part of the equation (along with savings from, for example, lower drug prices).

Please select this link to read the complete article from OSAP Strategic Partner Clark Schaefer Hackett (CSH).