What You Need to Know About Biden’s New Tax Laws

Did you know that one of Joe Biden’s greatest accomplishments is the Violence Against Women Act? It provided over $1 billion to investigate and prosecute violent crimes against women. 

While he has done well in certain avenues, it’s not all peachy. And what do biden’s new tax laws mean for the average American? If you’re wondering the answer to this burning question, then read on today! 

Clean Energy Tax Credits

Tax credits are extended into 2032 for homeowners who add wind or solar power. You could qualify for a tax credit that’ll decrease after 2032. 

These tax incentives could also apply to heat pumps, water heaters, and HVAC systems. These rebates occur immediately. 

Managing Prescription Drug Prices

Speak with a tax attorney to determine whether you qualify for these laws. Prescription discounts are with seniors in mind. 

It’ll only be for ten specific drugs but should expand to more. It’s to lower medications for Medicare beneficiaries. Drug manufacturers will need to pay a rebate if they increase prices more than Medicare’s inflation rate. 

Stock Buyback Tax

Many companies have repurchased their stocks to boost their value. The Inflation Reduction Act will add a 1% tax on stock buybacks that corporations choose to use. 

There will also be a 15% corporate minimum tax. This tax is for those who earn more than $1 billion in profits. 

Rebates on Electric Vehicle Purchases

Current tax credits for the purchase of electric vehicles will continue through 2032. It applies to any clean vehicle, including hydrogen fuel cell cars.

The cars must be within certain price limits. Trucks and SUVs have a higher price limit than cars. 

It applies to married couples filing a joint return under $300,000. For single tax filers, they must have an income under $150,000.

The rebates are effective immediately. Once it’s 2024, there will be more requirements, such as American-made components, including batteries. 

Creates Clean Energy Jobs

The Inflation Reduction Act creates well-paying union jobs to help reduce emissions across the economy. It includes both incentives and lab protections. 

The clean energy tax credit programs will stop companies from ripping off workers. It’ll punish companies that promise to pay wages that don’t follow through. 

American manufacturing could see a revitalization. This includes clean energy supply chains. Clean energy includes carbon capture, solar, wind, and clean hydrogen. 

It promotes American jobs and domestic sourcing. These tax credits are increased if the American steel in wind projects meets the domestic content threshold. Clean energy tax credits will increase if the projects are established in communities that previously used oil, coal, or natural gas. 

Understanding Biden’s New Tax Laws

After exploring this guide, you should better understand Biden’s new tax laws. Watch and see how it’ll impact you and your family. Consider buying a clean energy vehicle since it could help the air quality and give you a tax credit. 

Would you like to read more insightful content? Then, be sure to check out our other articles today! 

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