IRA and CHIPS: Tax considerations
Hot Topic | March 2025
Our impressions on the accounting for key provisions in Inflation Reduction Act and CHIPS and Science Act.
The Inflation Reduction Act of 2022 (IRA) and the CHIPS and Science Act of 2022 (CHIPS) introduce new options for monetizing certain credits, a corporate alternative minimum tax, and a stock repurchase excise tax.
Applicability
Companies subject to US federal tax law
Relevant dates
- CHIPS enactment: August 9, 2022
- IRA enactment: August 16, 2022
- For details on dates relating to specific provisions in the IRA, see KPMG publication, Analysis and observations: Tax law changes in the "Inflation Reduction Act"
Key impacts
We provide guidance on the accounting for the key provisions of the Inflation Reduction Act and the CHIPS and Science Act of 2022, including Corporate AMT, excise tax on share repurchases and tax credits.
The March 2025 edition replaces the detailed US GAAP guidance with references to the current guidance in our respective accounting publications.
Report contents
- Corporate AMT
- Excise tax on stock repurchases
- New options for monetizing certain credits
- Nonrefundable credits
- Refundable credits
- Transferable credits
Download the document:
US tax legislation: IRA and CHIPS
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