Eversheds Sutherland Tax Reform Law Blog
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Legal Alert: Reforming San Francisco’s gross receipts tax

On February 5, 2024, the Offices of the Controller and Treasurer & Tax Collector for the City and County of San Francisco published a report outlining tax reform recommendations in time to inform a potential ballot measure for the upcoming November 2024 election. The report recommends significant changes to San Francisco’s gross receipts tax. Read the full Legal Alert...

Legal Alert: Inflation Reduction Act imposes a nondeductible 1% excise tax on certain corporate stock buybacks

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the IRA) into law. Among the provisions of the IRA is a nondeductible 1% excise tax on the repurchase of corporate stock (the Buyback Tax). The Buyback Tax is directly levied on repurchasing corporations, which means that corporations that currently have, or are considering, the adoption of stock buyback...

Legal Alert: Signed, sealed, delivered – Biden signs Inflation Reduction Act enacting “new” corporate minimum tax

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the IRA) into law. Among the most notable IRA provisions is a 15% corporate alternative minimum tax on corporations with book profits exceeding $1 billion effective for taxable years beginning after December 31, 2022 (the AMT). Originally a provision of the now-defunct Build Back Better Act, the AMT was...

Legal Alert: Inflation Reduction Act of 2022 signed into law – A summary of the energy tax provisions

The Inflation Reduction Act of 2022 (the Act) was signed into law on August 16, 2022, and includes about $370 billon for American energy security and climate change. Those changes include very substantial extensions, expansions and modifications of the tax credits for renewable and alternative energy development. In one of the best-kept secrets in Washington, Senators Manchin...

Legal Alert: Inflation Reduction Act of 2022 – The energy tax provisions you need to know about

The Inflation Reduction Act of 2022 (the Act) runs 725 pages and includes numerous energy tax provisions aimed at enhancing US. energy security. The Act, if enacted, would extend and expand the renewable and alternative energy tax credits, shift to technology neutral credits in 2025, provide for US energy component manufacturing credits and modify the rules for electric vehicle tax...

Legal Alert: Inflation Reduction Act targets carried interests

On July 27, US Senators Joe Manchin and Chuck Schumer announced proposed legislation referred to as the Inflation Reduction Act of 2022 (the Act).  The proposed legislation includes changes that would expand the scope of IRC section 1061, which generally imposes limits on tax benefits available to carried interests and other compensatory partnership interest arrangements. Read the full...

Legal Alert: Back from the dead – Corporate minimum tax resurfaces at eleventh hour in Inflation Reduction Act of 2022

On July 27, 2022, the Senate announced agreement on a reconciliation package entitled the Inflation Reduction Act of 2022 (the IRA), the artist formerly known as the Build Back Better Act (the BBBA). Although months ago the $2 trillion BBBA was declared dead, Senators Joe Manchin and Chuck Schumer introduced the skinnied-down $739 billion proposal Wednesday, with its submission to the...

Legal Alert: A welcome clean energy surprise – Inflation Reduction Act includes energy tax extensions and expansions

In a surprising turn of events, late on July 27, 2022, Senators Manchin (D-WV) and Schumer (D-NY) released the Inflation Reduction Act of 2022. The Act, which runs 725 pages, includes numerous energy tax provisions aimed at enhancing US energy security. Tax pay-fors in the bill include a corporate minimum tax and an increase in the tax rate on carried interest. A...

Legal Alert: Biden’s second (attempted) bite at the private equity apple – Key 2023 Green Book proposals impacting private equity funds and their investors

On March 28, 2022, the Biden Administration released the 2023 Fiscal Year Budget (the Budget) followed by the release of the Treasury’s Green Book, which provides explanations of the Biden Administration’s revenue proposals. Of the numerous tax proposals, several are of critical importance to private equity funds, their sponsors and investors. At the core of the Biden Administration’s...

Treasury Green Book includes Pillar II undertaxed payments rule (UTPR), corporate tax increase rate

On March 28, the Biden Administration released the 2023 Fiscal Year Budget, followed by the release of the Treasury’s Green Book, which provides explanations of the Biden Administration’s revenue proposals. Among the proposals is the adoption of the OECD’s Pillar II undertaxed payments rule (UTPR) in lieu of the Base Erosion Anti-Abuse Tax (BEAT). The UTPR denies a deduction or...

Legal Alert: IRS provides additional guidance on cost of removal, salvage and normalization

In PLR 202141001 (July 15, 2021) the IRS expanded upon the guidance it provided in PLR 202033002 (Aug. 14, 2020) regarding the proper ratemaking treatment of cost of removal (COR) and salvage under the normalization rules. As explained in our alert, the IRS: Reaffirmed that COR is not subject to the normalization rules, but salvage must be normalized. The computation of the reversal of...

Legal Alert: Significant, Proposed Limitations on IRA Investments Included in House Legislation

On September 27, 2021, the Build Back Better budget reconciliation legislation was introduced in the House of Representatives (the Legislation), which includes numerous revenue raisers and other tax-related changes. While many of these proposals have garnered much attention (increases in individual and corporate rates, among others), limitations on investments that can be held by...

New cryptocurrency tax law proposals by the House Ways and Means Committee

On September 13th, the House Ways and Means Democrats proposed legislative changes 1 that, if enacted, would impact the manner in which gain or loss is determined with respect to actual or certain deemed sales of cryptocurrencies. The legislation recently underwent the markup process and is now with the House Budget Committee. 2 The proposals generally extend the “wash sale rule” and...

Legal Alert: The devil is in the details – Final infrastructure framework announced, fingers crossed for continued R&E deductibility

Democratic leadership announced today that an agreement has been reached to fund the pending infrastructure and budget reconciliation measures. There does not appear to be any agreement regarding which specific tax measures that will be included, however, it is hoped that continued deductibility of research and experimental (R&E) expenditures will be included.  Read the full legal...

Legal Alert: An incomplete picture: Democratic senators release “framework” for international tax overhaul

On August 25, 2021, Senate Finance Committee members Wyden, Brown, and Warner released draft bill language and a section-by-section summary of their proposed International Tax Reform Framework. The legislative language is generally in line with the International Tax Overhaul proposals first released by the Senators on April 5, 2021. The draft legislation includes some provisions...


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