This document provides a brief summary of key tax provisions contained in the Inflation Reduction Act, P.L. 117-169 that was signed into law on August 16, 2022. The enacted bill includes many nontax provisions aimed at promoting clean energy initiatives as well as prescription drug pricing reform. Further research and analysis are recommended based on each client’s facts and circumstances.
Corporate alternative minimum tax
The act contains a 15% tax on the excess of the corporation’s adjusted financial statement income