President Joe Biden signed the Infrastructure Investment and Jobs Act into law November 15, 2021, and with that, a number of tax provisions are now in effect:
- Employee Retention Tax Credit Ends
- Wages paid after September 30, 2021 are no longer eligible for the ERTC, ending the credit early. To read more about the ERC and how supply chain disruptions may qualify your business, click here.
- Cryptocurrency Reporting Changes
- Cryptocurrency brokers, defined as anyone who transfers digital assets on behalf of another person, are now required to issue a form similar to a 1099 form disclosing who their customers are. While this definition of broker mainly includes the cryptocurrency exchanges, the definition is broad and more clarification may be needed.
- Additionally, any time a business or exchange receive over $10,000 in cryptocurrency, they must report the activity.
- Employer-sponsored Retirement Plan Minimum Funding Expanded
- Funding stabilization percentages included in the American Rescue Plan Act (ARPA) in March are now extended until 2034. This averaging interest rates over a longer period of time will reduce the rate used to determine minimum funding of the plans.
- Excise Tax Updates
- New or revived taxes on 42 potentially polluting chemicals, including 10 of the most common petrochemicals: methane, butane, benzene, toluene, xylene, ethylene, propylene, butadiene, butylene, and acetylene.
- Private Activity Bond Expansion
- Public activity bond utilization expanded for broadband and carbon capture projects.
- Disaster Relief Deadlines Extended
- The modifications made to automatic disaster relief deadline extensions to federally declared disasters that go on for an extended period of time or continue to expand in scope.
The Infrastructure Investment and Jobs Act contained additional funding information, the amount of tax provisions in the bill is lower than initially anticipated.
Corrigan Krause can help you navigate the Infrastructure Investment and Jobs Act changes
The Tax team at Corrigan Krause can help you and your business navigate everything from the end of the ERTC to the interest rates of the retirement plan in place for your employees. Email info@corrigankrause.com to connect with our team.