Tax Implications of the Senate Bipartisan Infrastructure Bill
On August 10, the Senate passed the one-trillion dollar Infrastructure Investment and Job Act. The bill is not yet law as it has not been voted on in the House. However, it is good to be aware of what could soon become new law as the bill has several tax implications. Let’s explore some of the tax implications of this proposed legislation.
Cryptocurrency is a current hot topic. This bill contains new reporting requirements for cryptocurrency brokers and establishes penalties for failure to adhere to these enhanced reporting requirements. See our last tax blog post for more information on what cryptocurrency is and how the IRS treats it.
The bill proposes the early termination of the COVID-19 Employee Retention Credit, cutting off the credit at September 30 rather than at the end of the year. This is another current hot topic that you can read about on our tax blog in a July post. The IRS has recently issued more guidance on how to claim the credit through the end of the year as this is still the current law.
Many of the bill’s tax changes are more directly related to infrastructure. The bill proposes to continue highway taxes through 2028. It reinstalls a prior tax exclusion for water and sewage disposal utilities that would allow them to obtain contributions to assist in construction without having to recognize them for tax purposes. It also allows the issuance of private bonds to carbon capture facilities and other qualifying broadband projects. The professionals at The Center for Financial, Legal, and Tax Planning, Inc. are always keeping abreast of the changes in tax law. Please contact us at (618) 997-3436 for more information.