The Senate passed The Inflation Reduction Act of 2022 on Sunday night. Democrats made some adjustments and recommendations to get the legislation over the line. The house is expected to pass this law soon – likely by the end of the week!
The Inflation Reduction Act has been updated, with a few key points to note:
- The carried interest loophole has been kept in place to gain Sen. Sinema’s support.
- IRS is set to receive approximately $80 billion in funding – which will be put towards enhanced enforcement.
- Many industry credits that expire at the end of the year have been either extended or expanded.
- A new corporate alternative minimum tax of 15% for corporations making over $1 billion.
- “No SALT, no deal” compromise: House Democrats are saying they will support the deal even though it keeps the cap on those deductions.
- Bill goes to the house for reconciliation, where the Budget Committee puts the bills into one big bill.
Keep In Mind: This bill hasn’t technically become law yet as it has to go back to the house for approval, but it is highly likely to pass.
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