Who gets a break? Clashing ideas on tax relief are teed up for the 2024 campaign - Josh Boak (AP), The Hill:
WASHINGTON (AP) — Just six days after the bipartisan deal on the debt limit became law, House Republicans proposed a slew of tax cuts, leading to charges of hypocrisy by Democrats in a squabble that shows two clashing visions for the U.S. economy.
GOP lawmakers are pushing deep tax cuts for companies and the affluent as the primary driver for sustaining economic growth, while President Joe Biden and fellow Democrats seek more targeted tax cuts to achieve social goals such as reducing child poverty and shifting to renewable energy that can help the economy in the long run.
2024’s hidden prize: The upper hand in tax ‘Armageddon’ - Burgess Everett and Sarah Ferris, Politico:
If either party can claim both the White House and Congress in next fall’s elections, there’s a huge prize for the taking: Unchecked power to reshape taxes for millions of Americans.
Much of the GOP’s sweeping Trump-era tax breaks are set to expire in 2025, which will almost certainly push Congress to act on their future. So the 2024 campaign will determine whether Republicans can keep the cuts, Democrats can rewrite them — or, if neither party gets a clean sweep, whether a split government prompts a massive fiscal collision.
On heels of debt fight, House GOP rolls out tax-cut package - Brian Faler, Politico:
Just days after Washington’s bitter fight over raising the debt limit, House Republicans are calling for billions in new tax cuts.
The package — which would beef up the standard deduction and expand business research writeoffs, among other provisions — is being rolled out with an eye toward a year-end tax deal, which many Democrats want as well. They are already demanding an expansion of the Child Tax Credit as the price of any agreement, which could swell the cost.
Evolution of TCJA Affected By Tax Provisions in CARES, ARPA, and IRA - Carrie Brandon Elliot, Tax Notes ($):
As originally enacted, many Tax Cuts and Jobs Act provisions were set to expire, phase out, or otherwise change between 2017 and 2027 in ways that mostly increase taxes. The Coronavirus Aid, Relief, and Economic Security Act mitigated some of these changes, while the American Rescue Plan Act and the Inflation Reduction Act (IRA) generally left them intact.
Regs Provide Prefiling Registration Requirements for Some Credit Elections - Joseph Disciullo, Tax Notes ($):
Temporary regulations (T.D. 9975) provide mandatory information and registration requirements for taxpayers planning to make an election to treat the amount of certain tax credits as a payment of federal income tax, or in the case of a partnership or S corporation, an election to receive a payment in the amount of the credits. The temporary regs also provide mandatory information and registration requirements for taxpayers planning to make an election to transfer certain federal income tax credits to an unrelated party. (Related IRS releases: IR-2023-116 and IR-2023-117. Related coverage: p. 2062.)
Section 48D provides an advanced manufacturing investment credit for any tax year in an amount equal to 25 percent of the qualified investment for that tax year for any advanced manufacturing facility of an eligible taxpayer. It also allows taxpayers other than partnerships and S corporations to elect to treat the amount of the credit as a payment against their federal income tax liabilities. Section 6417 allows applicable entities (including tax-exempt organizations, state and local governments, Native American tribal governments, Alaska Native corporations, the Tennessee Valley Authority, and rural electric cooperatives) to make an election to treat an applicable credit as a payment against the tax imposed by subtitle A for the tax year for which the credit was determined, equal to the amount of the credit. And section 6418 allows eligible taxpayers to elect to transfer certain credits to unrelated taxpayers rather than use the credits against their federal income tax liabilities.
Tax Credit Transfer Rules Will Usher A Clean Energy Bonanza - Keith Goldberg, Law 360 Tax Authority ($):
The long-awaited release of ground rules on how clean energy developers can transfer federal tax credits to others in exchange for cash will unleash a gusher of such deals and allow more projects to reap the Inflation Reduction Act's expansive tax rewards, experts say.
Energy tax attorneys say the U.S. Department of Treasury guidance on the IRA's so-called transferability provisions was the last — and most eagerly anticipated — major piece of guidance on how the law would be implemented. And the proposal that the Treasury and the Internal Revenue Service rolled out Wednesday in conjunction with its guidance on the IRA's so-called direct pay option for tax-exempt entities pretty much met industry's expectations.
Tax Evader Ordered To Pay $6.9M Bill - Kat Lucero, Law 360 Tax Authority ($). "A man who pled guilty to tax evasion in New York two decades ago is now liable for $6.9 million in taxes, interest and penalties for failing to pay the U.S. government the original amount assessed against him, a Florida federal court said Friday."
Today is Juneteenth. Since 2021, Juneteenth has been a federal holiday celebrating the liberation of all enslaved people in the United States.
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