KEY BUSINESS EFFECTS OF TAX BILL

[Lee B]

Copied from Accounting Today:

 

"Key effects on business in the bill that passed the House include:

A 15% minimum tax on corporations with over $1 billion in revenue, with exceptions made for accelerated depreciation and for subsidiaries of private equity starting in 2023, to raise $222 billion;

A 1% excise tax on stock buybacks, effective Jan. 1, to raise $74 billion;

An $80 billion boost to the Internal Revenue Service budget to hire more agents, upgrade technology in order to boost revenue collection;

An extension of loan loss limitation tax breaks from the Trump tax package;

New Superfund taxes on oil companies;

Drug prices negotiated by Medicare for the first time, with a tax penalty imposed on drug companies failing to abide by new prices; price negotiations begin in 2026 with 10 high-priced drugs; penalties imposed for price increases in sales to Medicare;

A $2,000 per year cap on out-of-pocket costs for seniors enrolled in a Medicare drug plan;

Approximately $374 billion in energy and climate-related provisions including tax incentives for green energy projects, a $7,500 tax credit for purchasing new electric vehicles and $4,000 credit for used EVs. Limits imposed on supply chain sourcing for EVs that qualify; and

A three-year extension of subsidies for Obamacare premiums, preventing expiration of subsidies in 2023."