Tax Credits

The Treasury Department and the Internal Revenue Service today issued further guidance on the employee retention credit, including guidance for employers who pay qualified wages after June 30, 2021, and before January 1, 2022, and additional guidance on miscellaneous issues that apply to the employee retention credit in both 2020 and 2021. Notice 2021-49 PDF amplifies prior guidance regarding the employee retention credit provided in Notice

Congress has passed the CHIPS Act of 2022 (HR 4346) and President Biden is expected to sign the measure into law soon. The Act provides $52 billion in funding to companies that build or expand semiconductor production facilities in the U.S. as well as funding for development of related emerging technologies.

One of the biggest hypes going around the internet, knocking on your front door, or blasting through your TV is all about how you can have solar installed on your house for no cost to you. But, the devil is in the details as they say.

They cook the books by saying that, IF you consider two factors:

08/04/23 - The IRS issued Notice 2023-59 PDF today regarding the requirements for home energy audits for taxpayers that want to claim the Energy Efficient Home Improvement Credit.

The Inflation Reduction Act change the credits available for taxpayers who purchase electric vehicles. Taxpayers may claim a credit up to $7,500 for a new clean vehicle and a credit up to $2,500 for a previously owned clean vehicle. 

The latest clean vehicle FAQs explain what happens if a clean vehicle sale is cancelled or the buyer returns or sells the vehicle. Note, “placed in service” means the buyer takes possession of the vehicle.

The Internal Revenue Service (IRS) has initiated a crackdown on the dubious Employee Retention Credit (ERC) claims, mailing over 20,000 disallowance letters to taxpayers and entities that did not exist or had no employees during the eligibility period.

In October of 2023, the IRS announced a 

The IRS and other agencies and departments have issued guidance on various aspects of clean vehicle credits. The guidance applies to vehicles placed in service starting in 2024. 

We will discuss: 

• battery component and critical mineral requirements for new clean vehicles, 
• dealer time-of-sale reports for new and previously owned clean vehicles, and 
• incremental cost guidance for the commercial clean vehicle credit calculation. 

Acronyms used: