Every year, there are changes to the tax laws. 2021 was no different and if you were too busy growing your business, you probably didn’t have the chance to keep up with them all. Thankfully, we make these tax changes part of our daily tasks, so we are aware of how each tax change will affect how much your business pays in taxes.
The Infrastructure Investment and Jobs Act
The Infrastructure Investment and Jobs Act was signed by the President back in November, after passing in the Senate in August and the US House of Representatives in early November. This Act brings many new tax provisions, although the number is fewer than first planned. As with any new tax law changes, there are a few implications you must be aware of for your business.
How the Infrastructure Investment and Jobs Act Will Affect the Taxes for Your Business
Employee Retention Credit
The American Rescue Plan Act of 2021 had originally extended the Employee Retention Credit for businesses until December 31, 2021. However, the Infrastructure Investment and Jobs Act is now eliminating all credit for any wages a business paid after September 30, 2021.
As you can see, there will be quite some confusion over these two conflicting timeframes. Especially since the new timeframe was not signed into law until closer to the end of the fourth quarter. Our firm will be keeping a close eye on any guidelines that are released in the future, so we can assist you accordingly for your business’s taxes.
Employer Sponsored Retirement Plans
This Act also extended the relaxation of minimum funding requirements for all employer sponsored retirement plans. The goal of this extension is to continue to increase tax revenue projections.
Contributions to Water and Sewer Utilities
If your business needed to contribute to a regulated public utility for water or sewer construction in the past year, you will be thrilled to know that this contribution has now been excluded once again. This Act ensures that business owners are not responsible for these contributions, at least for the 2021 tax year.
Private Activity Bonds
Qualified broadband projects, as well as qualified carbon dioxide capture facilities, are now included within the authorized private activity bond.
Excise Taxes
There is now an extension of all excise taxes for retail sales of heavy trucks and trailers, fuels, and tires.
Here at Neovision Tax and Accounting, we strive to stay on top of all of the new tax law changes that affect your business. While all of the changes from the new Infrastructure Investment and Jobs Act may not affect your business, there are going to be at least a couple that will. We encourage you to contact us if you have any questions about a specific change or if you are unsure of how your business will be affected.