On 28 September 2021, the U.S. Congressional Research Services (CRS) has published a report on the tax provisions in the legislative recommendations for the budget reconciliation legislation, also known as the “Build Back Better Act. The report was marked up and approved by the House Ways and Means Committee on 14 to 15 September 2021.
The report summarizes the tax provisions in the Build Back Better Act, including;
- an increase in the corporate income tax rate to 26.5%;
- modifications to the treatment of international taxes that would generally increase revenues, including changes to
- the deduction for foreign-derived intangible income;
- foreign tax credit limitations; and
- the tax on global intangible low-taxed income
- modifications to the tax treatment of the energy sector that would generally reduce revenues; including
- extension and modification of the credit for electricity produced from certain renewable resources
- extension and modification of the energy credit; and
- extension of excise tax credits for alternative fuels, biodiesel, and renewable diesel.
The effective date for most of the proposed tax provisions would be after December 31, 2021.
