Inflation Reduction Act

• IRS is increasing its budget by 80 billion over 10 years to improve tax enforcement – Unreported income from K-1s and Foreign sources are areas of emphasis.

• Homeowners' credit extended for Solar Projects like rooftop panels for another 10 years.

• Electric Vehicle tax credits extended till Dec 2032– New law removes the 200K cap limit per manufacturer for claiming credit.  Tesla, GM & Toyota owners to benefit from 2023 (subject to income limits of 300k for married filing joint returns)

• Health Insurance Premium Tax credit to be extended for lower-income taxpayers.

• Big corporations above 1 Billion dollars in income have to pay a minimum of 15% tax on their Adjusted income.

• 1% excise tax on Corporate stock buybacks.

• Research &Development credit of up to 250K can be applied to Medicare payroll taxes.

• Medicare to negotiate a lower price for prescription drugs.

  What did not change:

•  No change in Estate or Gift tax rules.

• No increase in tax rates for high-income earners.

• No change in Long Term Capital Gains rate.

• No change in Like-kind exchange laws.