Infrastructure Bill Passes With Few Tax Changes

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The new $1.2 trillion Infrastructure Bill finally passed by Congress over the weekend—after months of kicking around this political football. While there are limited tax implications, it does provide massive investments in various segments of American society. It now awaits President Biden's signature.

Nov 8th 2021
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With Congress’s passage of the Infrastructure Bill, it seems several controversial tax changes have been restricted to the Reconciliation Bill, which has yet to be finalized.

By and large, the Infrastructure Bill doesn’t touch on tax aspects, although you can expect a slew of tax provisions to be included in the reconciliation legislation, if enacted.

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That said, here are a few tax-related implications from the Infrastructure Bill. First and foremost, it does eliminate the employee retention credit (ERC) for the last quarter of 2021. Wages paid after September 30, 2021 won’t qualify for the ERC. Previously, it was set to last through the end of the year.

In addition, the Infrastructure Bill requires tax reporting of crypto currency transactions, requiring all digital asset transactions worth more than $10,000 to be reported to the IRS. The agency is expected to issue guidance in the near future.

Finally, the Bill also extends several highway-related taxes, extends and modifies certain Superfund taxes and permits private activity bonds for qualified broadband projects and carbon dioxide facilities. 

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