What Will the Inflation Reduction Act Mean to You and Your Business?
As you start to learn more about the recently passed Inflation Reduction Act, we’re helping you understand how it will affect your business and your family. Called the Inflation Reduction Act because of its goal of reducing the deficit by taxing our country’s biggest corporations and lowering healthcare costs, experts say we can expect to see little impact on high prices in the short term.
Here’s a look at some of the changes the law will bring:
Taxes
The Inflation Reduction Act includes several tax provisions, including a 15% minimum tax on our country’s largest corporations: those with over a billion dollars in revenue. It also brings an $80 billion investment in the IRS, and a 1% excise tax on corporate share buybacks.
About half of the $80 billion will give the IRS funds to increase enforcement primarily through pursuing big corporations. The other half is expected to go toward improved customer service and modernizing some systems and operations.
Healthcare
The Inflation Reduction Act will bring down some healthcare costs for Americans, though you may not see the impact right away. It will give Medicare the power to negotiate the cost of drugs, but not until 2026. It will also extend Affordable Care Act (ACA) subsidies through 2025 and starting in 2025 will cap out-of-pocket drug costs at $2,000 a year for those receiving Medicare.
Climate
The climate elements of the Inflation Reduction Act could bring some new opportunities for businesses. They include almost $370 billion in incentives for renewable energy, tax credits for buying new or used electric vehicles (up to $7,500), and tax credits up to $40,000 for commercial electric vehicles that are over 14-thousand pounds. Homeowners will see tax credits for installing solar panels or buying other energy efficient products.
Watch for further information from GJM regarding the details of the Inflation Reduction Act in the upcoming weeks.
Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business & transaction advisory, healthcare management advisory, outsourced accounting, and risk advisory. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution, nonprofit, private equity and utilities.
