With the passing of the Inflation Reduction Act of 2022, there are some possible tax planning opportunities relating to green energy credits. The majority of the spending in the Act is for tax credits encouraging renewable energy and reducing emissions. This includes an expansion of energy credits available to individual taxpayers: however, one source of funding for the Act that will affect individual taxpayers is the stated goal of increasing Internal Revenue Service audit rates. This has raised concerns of increased audit rates for individuals.

The House has passed the Build Back Better Plan. The Bill now goes to the Senate, where additional compromises and changes could be made. Here are the Plan’s tax provisions and how they could affect you.

The Democratic Majority of the House Ways and Means Committee has released tax proposals to be included in proposed budget reconciliation legislation. These proposals present several new spending initiatives in the areas of infrastructure, green energy, social safety net, and prescription drugs. To raise revenue, the tax proposals include additional tax law changes.