{"id":8269,"date":"2023-06-08T03:51:27","date_gmt":"2023-06-08T10:51:27","guid":{"rendered":"https:\/\/familyenterpriseusa.com\/?p=8269"},"modified":"2023-06-08T03:51:38","modified_gmt":"2023-06-08T10:51:38","slug":"tax-policy-updates-tax-reform-proposal-proposed-rules-and-more","status":"publish","type":"post","link":"https:\/\/familyenterpriseusa.com\/taxes\/tax-policy-updates-tax-reform-proposal-proposed-rules-and-more\/","title":{"rendered":"Tax Policy Updates, Tax-Reform Proposal, Proposed Rules, and More"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”4px|||||” 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_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/polling-and-research\/contact-your-representatives-in-congress-to-join-the-congressional-family-business-caucus-now\/” button_text=”Contact Your Representatives in Congress to Join the Congressional Family Business Caucus Now!” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Call to Action Button Top” _builder_version=”4.20.2″ _module_preset=”default” custom_button=”on” global_module=”7025″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_button][et_pb_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”Content” _builder_version=”4.20.2″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n

GOP Lawmakers Prepare Expansive Tax-Reform Proposal.<\/strong>\u00a0House Republicans are expected to unveil an economic-growth package in the coming weeks that will encompass tax provisions relevant to a broad cross-section of the U.S. economy. Last month, House Ways and Means Committee Chairman Jason Smith (R-MO) announced his intention to finalize the bill by his birthday, June 16.<\/h2>\n

 <\/p>\n

While a partisan bill is unlikely to receive consideration in the Democratic-controlled Senate, the proposals offered by Republicans will lay the groundwork for the development of future bipartisan tax legislation in the 118th Congress. Moreover, the effort will kickstart the debate over extensions of certain\u00a0Tax Cuts and Jobs Act<\/a>\u00a0(TCJA) provisions, which is expected to intensify in the lead-up to the expiration of the individual tax cuts in 2025.<\/h3>\n

 <\/p>\n

GOP lawmakers have not provided explicit details of the proposals that will be included in the package. However, Chairman Smith has frequently noted that his \u201ctop priority is delivering for the working families, farmers and small businesses.\u201d Accordingly, the bill is likely to contain substantial tax provisions focused on supporting these three categories of taxpayers, including:<\/p>\n

\u201cWorking Families.\u201d<\/u>\u00a0While expectations are high that the bill will focus significantly on business tax incentives, Republicans may also seek to build on their previous successes in expanding tax relief for low- and middle-income taxpayers.<\/p>\n

Want to learn more?<\/a><\/p>\n

Treasury Department and IRS Solicit Feedback on Proposed Rules for Low-Income Communities Bonus Credit.\u00a0<\/strong>The Treasury Department and Internal Revenue Service (IRS) issued proposed rules (REG-110412-23<\/a>) on May 31 concerning the section 48(e) Low-Income Communities Bonus Energy Investment Credit Program established by the\u00a0Inflation Reduction Act<\/a>\u00a0(IRA). Unlike other energy-tax incentives included in the IRA, the section 48(e) bonus credit operates through a maximum credit allocation. Accordingly, to receive credits under this provision, taxpayers must submit project applications for consideration under a competitive-award process opening later this year.<\/p>\n

The program was created within the existing section 48 Investment Tax Credit (ITC) and allows the Treasury Secretary (through the IRS) to designate specific solar and wind energy-generation projects to receive bonus-credit amounts above the base 30% ITC if they comply with certain environmental-justice initiatives. The rules also reiterate that qualified projects must be built in connection with low-income communities and have a maximum net output of less than 5 megawatts. Under the program, a project can receive an additional 10% or 20% ITC boost if it satisfies the relevant eligibility criteria.<\/p>\n

The notice of proposed rulemaking requests comments from stakeholders on any aspects of the bonus credit that require clarification or modification. Comments must be submitted to the Treasury Department and IRS by June 30, 2023.<\/p>\n

Would you like to know more?<\/a><\/p>\n

Treasury Department and IRS Announce Updated Application Timeline for Advanced Energy Project Credit.\u00a0<\/strong>The Treasury Department and IRS unveiled guidance (IRS Notice 2023-44<\/a>) on May 31, setting out the application process and review criteria for the Advanced Energy Project Credit under section 48C.<\/p>\n

The section 48C credit was refreshed by the\u00a0Inflation Reduction Act<\/a>\u00a0(IRA), allowing for an additional allocation of $10 billion in credits, with $4 billion of the allocation earmarked for projects in certain energy communities. The credit follows a two-tier structure based on the satisfaction of the prevailing wage and apprenticeship requirements. Projects are eligible for a base credit of 6% and a maximum credit of 30% if the conditions are met.<\/p>\n

Click Here to Learn More.<\/a><\/p>\n

Senate<\/strong>\u00a0Committee (Re)approves Chile Tax Treaty.<\/strong>\u00a0The Senate Foreign Relations Committee voted 20-1 on June 1 to approve a measure to ratify the\u00a0tax treaty<\/a>\u00a0between the United States and Chile. The treaty is expected to increase investment by U.S. and Chilean companies by reducing applicable taxpayers\u2019 withholding tax rates on dividends, interest and royalties. The treaty also addresses concerns regarding multinational corporations\u2019 ability to engage in certain tax-avoidance transactions. The treaty was negotiated and signed by the Obama administration in February 2010 but had been stalled pending Senate ratification for more than a decade.<\/p>\n

Since 2010, the treaty has been advanced by the Foreign Relations Committee on four occasions, but it has never been considered by the full Senate. The ratification process was further complicated by international tax reform included in the 2017\u00a0Tax Cuts and Jobs Act<\/a>, which was not reflected in the already-signed treaty. However, lawmakers addressed the potential issues last year through reservation language included in the ratification measure, clarifying that the treaty would not prevent the imposition of the U.S. Base Erosion and Anti-abuse Tax (BEAT), among other modifications.<\/p>\n

Treasury Department to Focus on Universal CAMT Guidance.<\/strong>\u00a0Speaking at the Federal Bar Association\u2019s Insurance Tax Seminar last week, Treasury Department Office of Tax Policy Attorney-advisor Angela Walitt discussed the agency\u2019s plans for promulgating future guidance concerning the Corporate Alternative Minimum Tax. Walitt said that while \u201csome industry-specific things\u201d would be addressed in upcoming releases, the Treasury Department will focus on \u201cmore general answers\u201d intended to apply industrywide. Notwithstanding the emphasis on more inclusive guidance, the Treasury Department and Internal Revenue Service (IRS) issued\u00a0Notice 2023-20<\/a>\u00a0earlier this year to provide interim guidance specifically for certain contracts relevant to insurance companies.<\/p>\n

Biden Expected to Fill Long-Vacant IRS Chief Counsel Position.<\/strong>\u00a0President Joe Biden\u00a0announced<\/a>\u00a0his intention to nominate Marjorie Rollinson to serve as chief counsel for the Internal Revenue Service (IRS). Rollinson was previously IRS associate chief counsel (international) from 2016 to 2019, before exiting the government to take over as the deputy director of national tax at Ernst & Young. The chief counsel position is one of only two officials serving at the IRS that require Senate confirmation, and the role has remained vacant for the entirety of the Biden administration. If confirmed, Rollinson is expected to play a significant role in the ongoing implementation of the\u00a0Inflation Reduction Act<\/a>\u00a0tax provisions.<\/p>\n

Republican Strategy for Further Pillar Two Response.<\/strong>\u00a0Eric Oman, the deputy chief tax advisor for House Ways and Means Committee Republicans, spoke at the Federal Bar Association\u2019s Insurance Tax Seminar last week on the next steps for the GOP response to ongoing global tax developments. Oman noted that committee Republicans were \u201cfrustrated\u201d and \u201cdisappointed\u201d by the Biden administration\u2019s failure to consult Congress throughout negotiations over the Organisation for Economic Co-operation and Development (OECD) Pillar Two rules. Moreover, he highlighted\u00a0legislation<\/a>\u00a0proposed in response to the global minimum tax as a first step in the GOP response, noting that there are \u201cother proposals that certainly could come down the pipeline\u201d concerning U.S. counters to Pillar Two.<\/p>\n

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<\/strong>Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you\u2019ll immediately recognize a different type of energy. Complacency doesn\u2019t have a place here. Flexibility and inspiration do.\u00a0Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients\u2019 needs and provide them with the resources they require to meet their business objectives.<\/p>\n

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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<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, multi generational businesses<\/a> and family businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to generationally-owned family businesses<\/a> 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 include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n

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Family Enterprise USA<\/a> promotes family business and job creation, growth, and sustainability by advocating for family businesses<\/a>, their lifetime of savings, and the issues they face running their businesses every day. Some of the issues we fight for or against with Congress in Washington DC are high Income tax<\/a> rates, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift, estate taxes<\/a> and generation skipping taxes<\/a>. Family Enterprise USA represents and celebrates all sizes and industries of family businesses<\/a> and multi-generational<\/a> employers.<\/p>\n

Family Enterprise USA<\/a> (FEUSA) is a 501(c)(3) non-profit organization. Family foundations can donate.<\/a><\/p>\n

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GOP Lawmakers Prepare Expansive Tax-Reform Proposal.\u00a0House Republicans are expected to unveil an economic-growth package in the coming weeks that will encompass tax provisions relevant to a broad cross-section of the U.S. economy. Last month, House Ways and Means Committee Chairman Jason Smith (R-MO) announced his intention to finalize the bill by his birthday, June 16. […]<\/p>\n","protected":false},"author":2,"featured_media":8273,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[43,78,76,36],"tags":[],"class_list":["post-8269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-estate-taxes","category-in-the-news","category-income-taxes","category-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/8269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8269"}],"version-history":[{"count":11,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/8269\/revisions"}],"predecessor-version":[{"id":8274,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/8269\/revisions\/8274"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/8273"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}