2021-08-03-KPMG_Global-United_States_–_Senate_Finalizes_Bipartisan_Legislative_Text_on_Infrastructure_Bill_3页_122kb

United States - Senate Finalizes Bipartisan Legislative Text on Infrastructure Bill

Core Content

On August 1, 2021, the U.S. Senate finalized the Infrastructure Investment and Jobs Act, a bipartisan bill that includes approximately $550 billion in spending. The legislation also outlines a mix of revenue-raising tax provisions and tax-neutral provisions aimed at supporting eligible taxpayers. The bill is expected to be voted on in the coming week.

Key Provisions Affecting Individuals and Employers

The bill includes several tax-related provisions that may affect individuals and their employers:

Revenue-Raising Tax Provisions

• Digital Asset Information Reporting: The bill requires information reporting on digital assets such as cryptocurrency, effective for returns and statements filed or furnished after December 31, 2023. This provision is estimated to raise $28 billion over a 10-year period.
• Early Termination of Employee Retention Credit: The credit, which was introduced to support employers during the pandemic, is set to terminate earlier than originally planned. It will apply to wages paid before October 1, 2021 instead of January 1, 2022, and is estimated to raise $8.2 billion over a 10-year period.
• Pension Smoothing (Section 430(h)(2)(C)(iv)): The bill modifies the table of applicable minimum and maximum percentages for certain pension plans, which is estimated to raise $2.9 billion over a 10-year period.

Tax-Neutral Relief Provisions

• Disaster-Related Deadline Extensions: Taxpayers affected by federally-declared disasters may receive modified automatic extensions for certain deadlines.
• Combat Zone and Contingency Operations Relief: Rules for postponing certain acts due to service in combat zones or contingency operations are updated.
• Inaccessible Filing Location Relief: A provision tolls the time for filing a petition with the Tax Court if the filing location is inaccessible on the due date.
• Significant Fire Relief: The bill allows for the postponement of certain tax deadlines in the case of "significant fires."

Why This Matters

The Infrastructure Investment and Jobs Act does not include the corporate or individual tax rate proposals from President Biden's "Made in America Tax Plan" or "American Families Plan". However, it introduces other tax provisions that could impact individuals and certain employers. These provisions are designed to fund the infrastructure spending while also addressing specific taxpayer relief needs.

KPMG Note

KPMG LLP (U.S.) is monitoring the legislative process of the infrastructure bill and will provide further updates as necessary. The firm emphasizes that the information provided is for general informational purposes only and does not constitute written tax advice.

Footnotes

1. The bill was announced in a C-Span video titled "Senators Announce Deal Is Made on Bipartisan Infrastructure Bill" (August 1, 2021).
2. The legislative text is referenced as H.R. 3684, 117th Cong. (1st. Sess. 2021). Further coverage can be found in TaxNewsFlash (August 2, 2021).
3. Related coverage is available in previous GMS Flash Alert issues: 2021-157, 2021-126, and 2021-101.

Disclaimer

The information in this document is not intended to be written advice concerning one or more Federal tax matters. It is issued for general informational purposes only.

About KPMG

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