[et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_button button_url=”https:\/\/www.ditchtheestatetax.com\/contact-congress-2\/” url_new_window=”on” button_text=”Join us in asking Congress to stop taking a lifetime of savings from multi generational businesses.” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Call to Action Button” _builder_version=”4.18.0″ _module_preset=”default” custom_button=”on” global_colors_info=”{}”][\/et_pb_button][et_pb_divider _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”Content” _builder_version=”4.18.0″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n
Previously included in the legislation was a controversial proposal from Sen. Joe Manchin (D-WV) to reform the U.S. energy permitting process through his Energy Independence and Security Act. This was likely included in the bill because of an agreement with Senate Majority Leader Chuck Schumer (D-NY) that was needed to secure Manchin\u2019s vote on the Inflation Reduction Act in August. However, late on Sept. 27, Manchin requested that Schumer pull his permitting reform language from consideration as part of the CR.<\/p>\n
Congress must pass a continuing resolution by Sept. 30 to avoid a government shutdown. At the time of this writing, the Senate is expected to vote on cloture of the CR later tonight. If the cloture vote meets the 60-senator threshold, the bill will advance towards a floor vote in the Senate and subsequent House consideration before the end of the fiscal year.<\/p>\n
Treasury Slow to Announce Guidance on New Energy Tax Credits.<\/strong>\u00a0Included in the recently passed\u00a0Inflation Reduction Act<\/em><\/a>\u00a0(IRA) is nearly $400 billion in new federal expenditures for a broad range of energy and climate policies. Of this funding, the Joint Committee on Taxation\u00a0estimated<\/a>\u00a0that over half would be spent on new and expanded tax incentives designed to expedite the transition to clean energy generation and increase domestic production. Now, with the bill signed into law, the Treasury Department will be responsible for providing most of the necessary regulations with input from the Department of Energy (DOE), the Environmental Protection Agency and the Department of Labor.\u00a0<\/p>\n To date, Treasury has released almost no information on a potential timeline for when taxpayers may expect guidance concerning the implementation of the IRA\u2019s energy sections. While many of the energy tax credits are relatively-straightforward extensions of current law, there are several key statutes that will require significant explanation. These include the implementation of completely new hydrogen and advanced manufacturing credits; the development of new rules concerning transferable and direct pay credits, especially those payable to non-taxpayers; and the creation of requirements around new prevailing wage and apprenticeship stipulations attached to some bonus credit amounts.\u00a0\u00a0<\/p>\n Furthermore, officials at Treasury have generally deferred most stakeholder requests for energy-related meetings. Reports indicate that Treasury has focused its limited bandwidth on preparing to administer the 15% book profits minimum tax that is scheduled to go into effect in 2023.<\/p>\n The most probable explanation for the absence of communication on energy tax guidance is that Treasury is still understaffed. Though it employs nearly 100,000 staff, about 80% of personnel are dedicated to the operation of the IRS, an agency that is also currently experiencing its own staffing issues. To remedy these shortfalls, the Treasury Office of Tax Policy, currently spearheaded by Assistant Secretary\u00a0Lily Batchelder, is expediting hiring efforts with a focus on private-sector experts with experience in renewable-energy financing, among other key veterans of the energy industry.<\/p>\n Applications Open for New Hydrogen Hub Project.<\/strong>\u00a0While the Treasury Department has yet to release significant guidance on energy tax incentives greenlit through the IRA (see above<\/em>), earlier this week, the Department of Energy (DOE) released new information on ongoing efforts to allocate funding for a novel hydrogen hub project. The DOE regional clean hydrogen hubs (H2Hubs) initiative received $8 billion in total grant funding through the\u00a0Infrastructure Investment and Jobs Act<\/a>\u00a0to develop at least four new hydrogen communities. Each community is expected to include technology to produce, transport and utilize low-carbon hydrogen.<\/p>\n On Thursday, the DOE Office of Clean Energy Demonstrations began to\u00a0solicit<\/a>\u00a0applications for the first $7 billion in H2Hub funding. Of note, the\u00a0funding opportunity<\/a>\u00a0mentions that the DOE is now hoping to, at least partially, fund between six and 10 hubs, and to the maximum extent practicable, it will try to select a wide array of projects that encompass several different feedstocks and end uses for the hydrogen. The first stage of the application process requires the submission of a concept paper outlining the applicant\u2019s proposed project, potential timeline, risk analysis and overview of anticipated total cost and job creation. The deadline for applicants to submit concept papers is Nov. 7, 2022, and full applications for the program are due on April 7, 2023.<\/p>\n In conjunction with the opening of H2Hub applications last week, the DOE released\u00a0draft guidance<\/a>\u00a0concerning the target lifecycle emissions requirements for produced hydrogen to be considered clean. The proposed guidance established a minimum lifecycle emissions target that is in line with the IRA\u2019s new 45V hydrogen production tax credit at 4 kg of CO2e emitted per 1 kg of pure hydrogen produced. While this new Clean Hydrogen Production Standard (CHPS) is not touted as a regulatory standard, it is worth noting that it will likely be the baseline lifecycle emissions standard for any future hydrogen federal funding opportunities in the foreseeable future.\u00a0<\/p>\n GOP Outlines Economic Agenda for Next Congress.<\/strong>\u00a0Last Friday, House Minority Leader Kevin McCarthy (R-CA) unveiled the Republican\u2019s new \u201cCommitment to America\u201d agenda. The document is intended to act as a comprehensive policy platform for Republicans running in the upcoming midterm elections, outlining several key legislative priorities that the party intends to pursue in the next Congress\u2014especially if Republicans take control of one or both chambers.<\/p>\n The plan is broken down into four sections:<\/p>\n The first section of the agenda focuses on the GOP\u2019s new economic plan\u2014in particular, the document blames increased government spending under the Biden administration for exacerbating current inflationary pressures. To remedy these economic challenges, McCarthy suggests introducing deregulatory policies and tax cuts, including an extension of several business tax incentives that are currently scheduled to expire in 2025. McCarthy has also continuously rebuked Democrat\u2019s commitment to funding the IRS with $80 billion in new spending, committing to introduce legislation to repeal funding for new auditors on the first day of the 118th Congress if Republicans take control of the House.\u00a0<\/p>\n The agenda also describes several policies intended to increase domestic energy production. Notably, this includes policies intended to boost both renewable and fossil fuel energy generation methods. To accomplish this, McCarthy suggests the pursuit of policies to reduce the permitting process for new energy projects by 50%, a bipartisan proposal that has long been a top priority for Sen. Joe Manchin (D-WV). McCarthy also advocates for the sale of several new federal sites to oil companies to increase domestic fuel production.<\/p>\n Throughout the agenda, McCarthy notes China\u2019s perceived dominance in the global supply chain, recommending that legislators take steps to cut off the country from U.S. markets and resources. Included in this strategy is a suggestion to bolster domestic manufacturing and increase U.S. global agenda competitiveness.<\/p>\n The agenda also includes several non-economic policy goals including a reduction in crime, increased government accountability and … (continued at Brownstein Hyatt Farber Schreck)<\/a><\/p>\n [\/et_pb_text][et_pb_text disabled_on=”off|off|off” admin_label=”Credit” _builder_version=”4.18.0″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/comms.bhfs.com\/rv\/ff0099cdc92e15c38871556da64ab701d3592f69″ link_option_url_new_window=”on” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/2022-annual-family-business-survey\/” button_text=”Have Your Voice Heard in Congress. Please Take Action Today!!!” button_alignment=”center” disabled_on=”on|on|on” admin_label=”Call to Action Button” _builder_version=”4.16″ _module_preset=”default” custom_button=”on” disabled=”on” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_divider disabled_on=”off|off|off” _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”Become a member text” _builder_version=”4.17.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5822″ global_colors_info=”{}”]<\/p>\n As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a member.<\/p>\n The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That’s why Family Enterprise USA is passionately working to increase the awareness of issues important to generationally-owned family businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC are high Income Tax Rates, possible elimination of Valuation Discounts, increase in Capital Gains Tax, enactment of a Wealth Tax, and the continued burden of the Estate Tax (death tax), and with the possible elimination of Step up in Basis.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”FEUSA Statement” _builder_version=”4.17.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n\n
Our thanks to Brownstein Hyatt Farber Schreck for this report. Read more and the summaries.<\/strong><\/h3>\n
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