MEDIA ALERT — How will the $1.2 trillion Infrastructure Investment and Jobs Act be funded?


Wolters Kluwer Tax & Accounting deals with the tax regulations of the US Senate’s Infrastructure Investment and Jobs Act

August 17, 2021 – (BUSINESS WIRE) – Wolters Kluwer Tax & Accounting (AEX: WKL):

What: On August 10, the US Senate passed the Infrastructure Investment and Jobs Act with bipartisan support. Most of the bill focuses on traditional funding for infrastructure improvements such as bridges, mass transit, electricity, roads, water, and the expansion of broadband access at a cost of $ 1 trillion over five years, including $ 550 billion in new ones Expenditure.

While funding sources originally focused on a hike in gasoline taxes and projected revenue from increased enforcement funding from the Internal Revenue Service (IRS), the government opposed the former and Republican senators opposed the latter. Ultimately, the bill passed by the U.S. Senate calls for funding to come from the use of available COVID-19 funds, other provisions related to pensions and Medicare, as well as some tax regulations focusing on cryptocurrency reporting, superfund consumption taxes, and employee early termination withhold credit and expansion of interest rate stabilization.

The US House of Representatives intends to consider the bill along with a separate budget reconciliation exercise. The budget decision on this measure has been passed by the US Senate, but the legislative language to reach the total budget is still being worked out. Therefore, the time by which the US House of Representatives will pass the Infrastructure Investment and Jobs Act is not currently clear.

Reason: The tax provisions relate not only to the tax provisions, but also to disaster relief, bonds for private activities, road taxes and trust funds, and water and sanitation facilities.

  • Reporting on cryptocurrencies. The Infrastructure Investment and Jobs Act requires brokers to report cryptocurrency transactions to the IRS and provides a comprehensive definition of “broker”. An amendment by the US Senate to narrow the definition of “broker” was not adopted but is likely to be re-examined by the US House of Representatives

  • Employee Loyalty Credit. The American Rescue Plan Act extended the COVID-related employee loyalty loan to December 31, 2021, and the IRS has just released guidelines on how to manage the loan for the last two quarters of 2021. However, the Infrastructure Investment and Jobs Act legislation would end the loan for employers who close after September 30, 2021 due to the COVID-19 pandemic

  • Superfund excise duties. The Infrastructure Investment and Jobs Act would restore Super Fund excise taxes on certain chemicals that had been phased out in the 1990s

  • Interest rate stabilization. The Infrastructure Investment and Employment Act would expand interest rate stabilization in relation to pension provision for sole employers

  • Highway taxes and trust fund authority. The Infrastructure Investment and Jobs Act would extend highway taxes until 2028 and the highway spending authority for the highway trust fund until 2026

  • Bonds of private activities. The Infrastructure Investment and Jobs Act would extend eligibility for borrowing private activities to qualified broadband projects and carbon capture facilities

  • Water and sanitation companies. The Tax Cuts and Jobs Act of 2017 removed an exemption for water and sanitation facilities from the requirement that a company must acknowledge contributions to construction aid. The Infrastructure Investment and Jobs Act would restore this exception

  • Disaster relief and extended tax deadlines. The Infrastructure Investment and Jobs Act would extend tax deadlines due to declared disasters and services in a combat zone, and extend the IRS’s power to extend deadlines to taxpayers affected by forest fires

Who: Tax expert Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax Analyst at Wolters Kluwer Tax & Accounting, can help discuss the tax provisions of the Senate-passed Infrastructure Investment and Jobs Act.

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PLEASE NOTE: These materials are designed to provide accurate and authoritative information relating to the topic being discussed. The information is provided with the understanding that Wolters Kluwer Tax & Accounting does not provide any legal, accounting or other professional services.

Contact: To arrange an interview with Mark Luscombe or other federal and state tax experts from Wolters Kluwer Tax & Accounting on this or other tax-related topics, please contact Bart Lipinski.

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