Keeping You Informed – Part One

This is a Summary of the Inflation Reduction Act

National Association of Women Business Owners

On August 16, 2022, the President signed the Inflation Reduction Act (IRA) into law.

The bill makes some changes to the current corporate tax code. It will:

Establish a 15% alternative minimum tax on book income on U.S. based corporations with at least $1 billion in revenue over a three-year average and foreign head-quartered groups with at least $100 million in revenue over a three-year average.
Impose a 1% excise tax on the fair market value of stock repurchased by publicly traded companies
Under the IRA, the federal government will have the authority to negotiate the price of certain prescription drugs under the Drug Price Negotiation Program through which the government must establish maximum prices for drugs
Require pharmaceutical manufacturers to pay rebates to the federal government if they raise the cost of drugs faster than the rate of inflation, with 2021 being the baseline year for inflation.
The law restructures Medicare parts B and D outpatient prescription drug plans to cap sharing at $2,000 per year
The IRA extends the health Affordable Care Act insurance subsidies to reduce monthly premium expenses through 2025.
The IRA includes nearly $80 billion in funding for the IRS that is intended to help the agency boost enforcement, support hiring, and update technology for the IRS.

My goal is that this information will be helpful to your business.

Let me know if you have questions and how I can help you with your bookkeeping.

Amanda Davis

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