Last time we talked about the American Families Plan in our last post. You can read it HERE. But now we are going to talk about what the American Jobs Plan is. New presidents bring new administrations and they bring new policies, budgets, and proposals. In May, the Biden administration revealed their 2022 budget for the fiscal year. The $6 trillion-dollar budget includes a focus on clean energy, research and developments, infrastructures, and tax changes/proposals.
The American Jobs Plan breakdown for corporate:
- Corporate tax increased from 21% to 28%
- A 15% minimum tax on book earnings
- 10% tax incentive for locating jobs/business in America
- Remove tax deductions for jobs overseas
- Repeal:
- the global intangible low-taxed income (GILTI) exemption for foreign oil and gas income
- foreign-derived intangible income (FDII);
- The new “stopping harmful inversions and ending low-tax developments” (SHIELD) rule
- Limit foreign tax credits from sales of hybrid entities
- Restrict corporate deductions of disproportionate borrowing in America
The American Jobs Plan breakdown for housing and infrastructure:
- Low-income housing tax credit expanded
- Provide:
- a new neighborhood homes investment tax credit
- federally subsidized state and local bonds
The American Jobs Plan breakdown for clean energy:
- Eliminate various fossil fuel tax preferences
- Expand the carbon oxide sequestration credit;
- Extend:
- renewable and alternative energy incentives
- energy efficiency and electrification incentives
- electric vehicle charging station credit
- Provide:
- tax credit for electricity transmission investments
- tax incentives for sustainable aviation fuel
- tax credit for low-carbon hydrogen
- a disaster mitigation tax credit
- credit for electricity generation from existing nuclear power facilities
- Establish:
- tax credits for qualifying advanced energy manufacturing
- tax credits for heavy- and medium-duty zero emissions vehicles
- Reinstate superfund excise taxes and modify oil spill liability trust fund financing.
If you have additional questions, the US Treasury suggested visiting their site.
Feel free to contact us if you feel any of these changes will affect your taxes or record keeping.