Ashby Corum, KPMG Washington National Tax partner, and Meredith Canady, KPMG Department of Professional Practice partner, join host John Barbagallo in another installment of our podcast series on the accounting implications of the recently enacted IRA and CHIPS legislation – with a focus on accounting for refundable credits.
- All US taxpayers using refundable credits in the IRA and CHIPS legislation
- CHIPS enactment: August 9, 2022
- Inflation Reduction Act enactment: August 16, 2022
- For dates relating to specific provisions, see KPMG publication Analysis and observations: Tax law changes in the "Inflation Reduction Act of 2022"
- 00:20 - Introduction
- 01:10 - How refundable credits work
- 02:05 - How refundable credits might change the model for investors in energy deals
- 03:10 - Accounting for refundable credits as government grants
- 04:45 - How the IAS 20 model works
- 06:20 - Challenges with bonus credits in the IAS 20 model
- 07:20 - Accounting under the IAS 20 model
- 09:50 - Other acceptable government grant analogies
- 10:45 - FASB project on government grant accounting
IRA and CHIPS: Tax considerations
Our impressions on the accounting for key provisions in the recently enacted tax legislation.
Analysis and observations: Tax law changes in the “Inflation Reduction Act of 2022”
President Biden today signed into law H.R. 5376 (commonly referred to as the “Inflation Reduction Act of 2022”)—the budget reconciliation legislation that includes significant law changes related to tax, climate change, energy, and health care.