Inflation Reduction Act: Clean Vehicle Credits, Energy Efficient Credits, Excise Tax on Stock Repurchases

Recently enacted, the Inflation Reduction Act brings with it a number of new and extended tax credits, including energy-related credits. The $7,500 credit under Section 30D is now the Clean Vehicle Credit. The cap on the number of vehicles qualifying for the credit has been removed. This means that vehicles that had reached the limit are now credit eligible. New Section 25E has been added and allows a credit of up to $4,000 for the purchase of clean used vehicles. There are stipulations attached to the credits, including those imposed on the manufacturers and modified adjusted gross income limitations on individuals using the credit.

In addition to vehicle credits, the Act includes energy credits for individuals and businesses. The newly named Energy Efficient Home Improvement Credit allows a $1,200 annual credit for specific home improvements and qualified energy property purchases for individuals. For companies, many existing credits have been modified and extended and new credits including Section 45Y credit for production of energy at qualified facilities and Section 48E clean energy electricity investment credit have been added. Tax practitioners working with individuals and businesses need to understand the tax benefits available under the Inflation Reduction Act.

Listen as our panel of federal income tax experts reviews the components of the Inflation Reduction Act for income tax advisers.

1. Inflation Reduction Act
2. Clean energy provisions
3. Clean vehicle credits
4. Energy efficient credits
5. Treating credits as tax payments
6. Corporate alternative minimum tax
7. Excise tax on corporate stock repurchases
8. Other provisions

The panel will address these and other key issues:

• Who qualifies for the new Clean Vehicle Credit under Section 30D?
• Treating energy credits as tax credits under new Section 6417
• What improvements qualify for the Energy Efficient Home Improvement Credit?
• Calculating the one percent excise tax on stock repurchases

Learning Objectives

After completing this course, you will be able to:

• Determine who qualifies for various new tax credits.

• Differentiate between direct credits and transferable credits.

• Ascertain how to treat energy credits as tax credits under new IRC 6417.

• Calculate the 1% excise tax on stock repurchases.

• Understand the scope and impact of the Inflation Reduction Act.

• Discern the changes made to health care and the ACA.

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years + business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of clean energy tax credits, stock repurchases, clean vehicles, energy-efficient home improvements, green energy, and treating credits as tax payments; familiarity with the Inflation Reduction Act, the Green New Deal, excise tax on corporate stock repurchases, and transferable credits.

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IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).