EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
President Biden signed the bill into law August 16, 2022.
The Inflation Reduction Act (IRA) of 2022 (H.R. 5376) includes an excise tax that imposes a 1% surcharge on corporate stock buybacks. The provision adds a new IRC Section 4501, which would impose a 1% excise tax on publicly traded US corporations for the value of any of its stock that is repurchased by the corporation during the tax year. The provision applies to repurchases of stock after December 31, 2022.
The legislative text of proposed new IRC Section 4501 in the IRA is substantially the same as what was included in earlier versions of the Build Back Better (BBB) Act.
How EY can help
-
Americas and US Tax Policy at Ernst & Young LLP is a one-stop resource for insights on national and state tax reform, tax policy, regulatory changes and legislation.
Read more
Summary
Publicly traded corporations with stock repurchase programs should consider how they may be affected by the provision’s potential application.