The Inflation Reduction Act – What US Companies and Individual Taxpayers Need to Know

digital bags of cash with market analysis

At a glance The main takeaway: On August 16, 2022, President Biden signed the Inflation Reduction Act into law. The $750 billion bill, passed through the Budget Reconciliation Process, contains a number of provisions that address healthcare, climate change and energy efficiency. Impact on your business:  The act includes several tax increase provisions largely aimed at…

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New CHIPS Tax Credit Provides Opportunities and Complexity for Companies and Investors in Superconductor Manufacturing

close up on semiconductor chips

At a glance The main takeaway: The recently passed CHIPS Act creates a new Advanced Manufacturing Tax Credit to provide incentives for US companies to invest in domestic semiconductor manufacturing. The Act allows a credit of up to 25% of qualified investment amounts in facilities or equipment used to manufacture semiconductors in the US. There are…

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Washington Rules that Sales Tax Applies to Online Account Access Services

By: Tina Chunn, SALT Senior Manager At a glance The main takeaway: A taxpayer’s services provided through an online banking platform were classified as digital automated services by the state of Washington and thus deemed taxable. Assess the impact: Accurately classifying services provided via online platforms for sales tax purposes can be complicated due to…

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California Issues New Ruling on Sourcing Service Revenue, Revokes Prior Guidance

By: Aspen Fairchild, SALT Senior Associate At a glance: Key takeaway: In March, the California Franchise Tax Board issued a legal ruling that revises its interpretation for sourcing service revenue for California apportionment and revokes prior guidance. Impact on your business: The ruling impacts prior apportionment positions as well as nexus, since California imposes an…

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U.S. Tax Planning Opportunities for Bona Fide Residents of Puerto Rico

At a glance: The main takeaway: There are several lucrative tax benefits and incentives available to certain U.S. taxpayers who relocate to Puerto Rico. Impact on taxpayers: Before relocating, it’s important for taxpayers to ensure and document that all U.S. and Puerto Rican requirements are met in preparation of any audit. Next steps: Consult with international tax specialists…

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Georgia Election to Pay Tax at the Pass-Through Entity Level

At a glance The main takeaway: Effective beginning the 2022 tax year, Georgia has joined many other states in allowing pass-through entities (PTEs), namely S corporations, partnerships and LLCs taxed as partnerships, to pay Georgia state income tax at the entity level. This legislation is intended to lessen the impact on individuals of the deduction limitation…

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The OECD’s Two-Pillar Solution Poses Big Tax Changes for International Businesses. Will You Be Affected?

At a glance The main takeaway: The Organisation for Economic Cooperation and Development’s (OECD) Two-Pillar Solution is intended to address tax challenges presented by increased digitalization in the global marketplace. Impact on your business: Many multinational businesses will be affected by the Pillar Two Model Rules, specifically the Global Anti-Base Erosion (GLoBE) rules, which impose…

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Digital Asset Staking: Your Top Tax Questions, Answered

At a glance The main takeaway: A U.S. District Court case out of Tennessee calls into question the taxability of staking rewards — specifically, whether those rewards generate taxable income. Impact on your business: Taxpayers who engage in staking, mining or similar activities currently operate in a tax “limbo,” but that may change with the development of…

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