The Infrastructure Investment and Jobs Act: Key Tax Updates

The Infrastructure Investment and Jobs Act, signed by the President on Nov. 15, 2021, provides just a few key tax law changes:

  • Cryptocurrency. The act expands cryptocurrency reporting requirements in an effort to stem underreporting of cryptocurrency transactions. These provisions have raised some concerns that the reporting requirements are so broad that they apply to people who generate cryptocurrency and to people who do not have the information needed to comply with the reporting requirements.
  • The Employee Retention Credit. The American Rescue Plan Act of 2021 extended the Employee Retention Credit to Dec. 31, 2021. The Infrastructure Investment and Jobs Act legislation eliminates the credit for wages paid after Sept. 30, 2021. However, with the enactment after the start of the fourth quarter of 2021, some concern has been expressed about the retroactive application of the elimination of the credit.
  • Employer-sponsored retirement plans. The relaxation of minimum funding requirements for employer-sponsored retirement plans is further extended, adding to tax revenue projections as funding requirements are decreased.
  • Contributions to water and sewer utilities. An exclusion for contributions to a regulated public utility for water or sewer construction is restored.
  • Private activity bonds. The authorized private activity bond uses are expanded to include qualified broadband projects and qualified carbon dioxide capture facilities.
  • Excise taxes. The excise taxes on fuels, retail sales of heavy trucks and trailers, and tires are expanded.
  • Superfund excise taxes. These are restored.
  • Disaster relief. Some disaster-related tax deadlines are extended.
  • Tax deadlines. The types of tax deadlines that are extended due to service in a combat zone are expanded.