President Biden plans to sign on Monday, Nov. 15, the $1.2 trillion infrastructure bill recently passed by the House of Representatives and approved earlier this summer by the Senate. Below are some of the provisions included in the bill that will become law once President Biden signs the bill:
- The Employer Retention Tax Credit would end on September 30, 2021, instead of December 31, 2021, as provided for through the CARES Act and the American Rescue Plan Act.
- Cryptocurrency brokers would be required to report any gains or losses, much like the required reporting of stocks and bonds. Any business that receives more than $10,000 of digital assets would also have to report such receipt, just as it must for receipts of more than $10,000 in cash.
- An automatic 60-day deadline extension period would apply to qualified taxpayers impacted by federally declared disaster.
- Various green energy provisions, such as funds available for expanding local recycling centers, are also included, which could impact businesses that are moving toward more eco-friendly goods and products.
- Fuel tax reductions that are slated to go into effect in 2022 would be delayed.
The lion’s share of changes to tax policy will be contained in the larger $1.75 trillion social safety net and climate passage, sometimes referred to as the “human infrastructure” bill. The framework of this larger measure – which has already been pared down from $3.5 trillion – is still being hammered out in the House. If and when that passes, it will be sent to the Senate for deliberation and debate. Any changes to that bill that pass the Senate will have to be hashed out between the two chambers before it would proceed to the president for his signature.
As always, we will continue to keep an eye on developments and discuss how you may be impacted by any changes.
Zachary Collins, CPA, is a Manager with our Business and Tax Advisory Group. He can be reached at firstname.lastname@example.org.