Dear Clients and Friends,
We are rapidly approaching the end of 2022, and as we have seen this past year nothing stands still in the economic and business landscape. This year we experienced historic inflation, dramatic swings in both the stock and the real estate markets, and growing recession concerns. Most everyone has felt the impact of these events, making strategic tax planning more crucial than ever to reaching your financial goals in an ever fluid economy.
The new Inflation Reduction Act (IRA) and the US Innovation and Competition Act of 2021 (CHIPS) made changes in the area of renewable energy initiatives and added an excise tax on stock repurchases. Additional changes in these tax acts include:
- An electric vehicle credit that increases in tax credit amounts and excludes credits for vehicle battery components manufactured outside of the US, beginning in 2024
- A Clean Electricity Production credit: a new business credit to produce clean electricity for facilities placed in service after 2024
- A Credit for Previously-
- Various other renewable energy credits
In the wake of the midterm elections, tax legislation is expected to remain limited to issues with bi-partisan support within a politically divided Congress. As new legislation is proposed by Congress, we will continue to monitor any potential tax implications and provide guidance as needed.
We are honored to be your trusted advisors. We hope that this letter provides some general insights about changes already enacted and those under discussion. We encourage you to schedule a call or meeting with us to tailor strategic tax planning for your individual situation.
See addendums included for further information:
Addendum A: General Tax Strategies for Individuals
Addendum B: General Tax Strategies for Business Owners
Addendum C: 2022 and 2023 Thresholds