The effective management of fixed assets is an increasing challenge. The complexity of calculating depreciation, coupled with tax law changes, merger and acquisition activity, and ERP system and cloud migrations has increased the need for companies to have a clear strategy around the management of fixed asset tax reporting.
The Inflation Reduction Act of 2022 created or expanded many tax credits to promote clean energy, not only for energy producers but for any business that produces carbon emissions, uses alternative energy sources for its own electricity consumption or for heating or cooling, owns commercial real estate, or uses vehicles in its trade or business.
During Climate Week 2024, PwC’s Policy on Demand will feature interviews on key energy incentives created by the Inflation Reduction Act. These interviews discuss important issues for companies to consider about the incentives and provide insight on upcoming developments.
PwC can help to analyze the timing of income and deductions, cost capitalization issues, and depreciation calculations - including bonus, leasing, and other accounting method issues, so that companies can evaluate their ability to utilize, change, or adopt advantageous accounting methods and achieve their overall tax objectives.
Complying with PWA requirements drives the difference between a 30% and 6% credit - is your company capitalizing on the increased credit opportunity? Our specialists can provide in-depth education on the rules, establish highly effective compliance programs, and leverage cutting-edge technology to streamline the entire process.
Randa Barsoum discusses what companies need to know about the newly-released proposed guidance on the clean electricity production and investment credits established by the Inflation Reduction Act.
Randa Barsoum discusses recently-issued regulations on direct payment of certain clean energy tax credits and the CHIPS Act advanced manufacturing investment credit and additional guidance on key issues needed by companies.
While the outlook for tax legislation remains uncertain with the return of Congress, new Treasury guidance informs companies what they need to know to monetize unused clean energy tax credits by transferring them to third parties - tax free - according to a final rule issued recently.
PwC works with companies to initially classify new fixed assets and update historical fixed asset classifications as well as remediate the effects of under- or over-depreciated assets. Specifically PwC works with companies to properly allocate and classify fixed assets placed in service during the current year as Section 1245 or Section 1250 property (often buildings that have been recently constructed or acquired) as well as deductible Section 162 expenditures, including helping with Section 1060 purchase price allocations. PwC also can help companies with fixed asset planning related to certain international-focused tax provisions.