President Joe Biden signed the Inflation Reduction Act of 2022 (IRA) into law on August 16, 2022. Not to be confused with an Independent Retirement Account, the Inflation Reduction Act of 2022 helps create opportunities for small businesses and start-ups while making prescription drugs more affordable and lowering health care and energy costs. In this article, we’ll break down the act to take a brief look at the Inflation Reduction Act of 2022.
What’s in the Inflation Reduction Act?
The Inflation Reduction Act of 2022 aims to help combat climate change, lower the cost of health care and prescriptions, and raise taxes on large corporations. This bill also seeks to build the economy for working and rural families by developing communities and expanding access to clean and efficient energy upgrades.
Increases Small Business Tax Credit
If you own a local business, you should know that the legislation prevents the raising of taxes on most small businesses or working families who make under $400,000 a year. The Inflation Reduction Act doubles the research and development of tax credits for small businesses, investing in them and helping them make a return. This credit gets applied against payroll taxes and other expenses like technology or product testing.
Emphasizes Building Communities
The Inflation Reduction Act of 2022 emphasizes building communities and supporting the working families of America. The bill invests in revamping communities and expanding access to sufficient and sustainable materials across the country. The goal is to create many job opportunities in the construction, coal, power plant, and oil and gas industries.
This bill aims to create many opportunities for you to build your investment portfolio to help develop energy sufficiency and sustainability in your local area. Many small businesses benefit from this bill, including small development businesses. If you’re thinking about investing in commercial buildings or looking into investing in rehab properties, now is the time.
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