Inflation Reduction Act SummaryCode: 26-INFLATE

98 pages
Course description and objectives:

On August 16, 2022, the Inflation Reduction Act (IRA), legislation designed in large part to lower consumer energy costs and provide economic incentives to reduce the human impact on climate change, became law. Among other provisions, the new law provides multiple tax incentives for taxpayers to:

·        Make energy efficient home improvements;

·        Purchase electric vehicles; and

·        Afford health insurance coverage.

This course addresses the provisions of the Inflation Reduction Act most likely to be of interest to tax preparers. In so doing, it examines the tax credits available for energy-efficient home improvements, for purchase of new and used electric vehicles, for electric car charging and natural gas powered car fueling devices, and clean energy generation. In addition, it discusses the expanded health insurance premium tax credits and the extension of the limitation of noncorporate taxpayer excess business losses. 

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) became law and eliminated certain of the Inflation Reduction Act provisions. Those OBBBA provisions will be examined in the text.

Course Learning Objectives

After completing this course, students should be able to:

• Apply the changes made to the Inflation Reduction Act provisions by the One Big Beautiful Bill Act;
• Calculate the tax credits available for taxpayers’ energy-efficient home improvements;
• Describe the tax credits available for the purchase of electric vehicles;
• Recognize the requirements and tax rules applicable to electric vehicle tax credits;
• Identify rules and limitations applicable to the qualified refueling property credit;
• List the clean energy and efficiency incentives;
• Apply the rules applicable to the expanded health insurance premium tax credit; and
• Recognize the limitation of noncorporate taxpayer excess business losses.

Category: Taxation

CPE credit: 2 Hours

Program Level: Update

Prerequisites: None

Advance Preparation: None

Exam expiration date: Participants must submit exams for grading within one year from the date of purchase