The Inflation Reduction Act (IRA) of 2022 and the CHIPS and Science Act of 2022 (CHIPS) were recently signed into law by President Biden. The legislation introduces new options for monetizing certain credits, a corporate alternative minimum tax, and a stock repurchase excise tax.
Companies subject to US federal tax law
Our guide includes preliminary guidance on US GAAP considerations. This preliminary guidance is based on our current understanding of the IRA and CHIPS, and we will continue to analyze how the authoritative accounting guidance applies to some of the provisions.
We will update our views as further information becomes available, practice develops, and further research and analysis is completed. This guide has been most recently updated on Nov. 7, 2022.
— Jennifer Acuna, KPMG U.S. Principal, Federal Legislative & Regulatory Services, Washington National Tax
What’s in the new legislation?
What's the accounting impact?