What is the American Jobs Plan?
Alakov469
american jobs plan

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.

Have any questions, give us a call here at Metro Tax & Financial Services.
We are here to help you get through the stress of taxes!

We offer a free 30-minute consultation so call us and let’s get your appointment set up (928) 680-1444

For more Tax Facts make sure you are following us on Facebook

Click HERE for more Tax Facts and Financial News

Suggested Articles

Tax Fact: Employee or My Own Boss

Should I be an employee or be my own boss? Everyone needs income to live and support their family. Question is should I be an employee, or should I be my own boss? There are pros and cons to both. As an employee, you are subject to fewer taxes (7.65%) being taken out...

Tax Breaks Continued for 2021

As we talked earlier this month about the new Unemployment and Tax Break changes for the year 2021, we continue looking into more tax breaks for this year. The American Rescue Plan also extended the initial CARES act unemployment benefits. The new plan extended the...

What is the American Families Plan?

Photo by Jessica Rockowitz on Unsplash What is the American Families Plan? 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...

5 Tips on How to Track Monthly Expenses

Keeping tabs on what you spend isn’t hard. It just has to become a habit. But here’s the good news: Studies show that it only takes an average of 66 days to form a habit. A little over two months. With these easy ways to track your monthly expenses,...

2021 Tax Changes to Benefit You

Here are 2021 Tax Changes that will benefit you. Each tax year, there are refundable tax credits that individuals can qualify for if they’ve earned an income (EITC) or have a child (CTC). These credits are normally based on the earned income of an individual, but...

Tax Fact: Do you need an Accountant?

As a business owner, an accountant can help you handle growth transitions, such as hiring employees or taking on more office space. They'll look after the detail (payroll, employee tax management, property tax, utility payments, and so on), leaving you free to look at...

Cryptocurrency

Interested in Cryptocurrency? Heard of it but don’t know where to begin or how it might affect you? Cryptocurrency or crypto is probably something everyone is vaguely familiar with. At least most media outlets have discussed the terms along with the big businesses...

Copyright and AI-Generated Images and Videos: What Businesses Need to

Know to Stay LegalArtificial intelligence (AI) tools are reshaping content creation. It is now easier for businesses to produce images and videos for use on websites, social media, and other digital outlets. All this is possible without the traditional hurdles of...

Energy Tax Credit Changes For 2025

The coming shakeup of the executive branch, along with Republican control of both houses of Congress, means tax changes are highly likely in 2025 and beyond. Positioning for new and amended tax provisions is already off to the races.Regardless of the political...

Tax Fact: How to Lower your 2019 Tax Bill

Even though 2019 may be over, there are still a few things you can do to lower your 2019 tax bill, if you have a little cash on hand. You cannot make any more contributions to your 401(k) for last year, but you can still make IRA and Health Savings Account (HSA)...