Tax News Update    Email this document    Print this document  

July 28, 2022
2022-1139

Reconciliation bill with tax provisions takes shape, Senate passes CHIPS-Plus bill

President Biden, Senator Joe Manchin (D-WV), and Senate Majority Leader Chuck Schumer (D-NY) have announced a deal on a $740 billion reconciliation bill with tax provisions.  Components of the deal include:

o Imposing a 15% corporate minimum tax ($313 billion)

o Implementing prescription drug pricing reform ($288 billion)

o Increasing IRS tax enforcement ($124 billion)

o Closing the carried interest "loophole" ($14 billion)

o Investing in energy security and addressing climate change ($369 billion)

o Extending the Affordable Care Act subsidies ($64 billion)

The Senate will take up the bill next week. The House would reconvene to vote on a Senate-passed bill. 

In other legislative news, the Senate passed the CHIPS and Science Act, a bill that aims to build a domestic supply chain for semiconductor chips. The House could take up the bill as soon as today. A WCEY Tax Alert has details.  

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement