President’s FY2023 budget
The President’s FY2023 budget includes proposals that would affect how certain income and deductions are calculated for federal income tax purposes, such as the new undertaxed profits rule and tax incentives for locating jobs in the United States. Subject to exceptions, the proposals are generally effective in tax years beginning after December 31, 2022.
Tax incentives for locating jobs in the United States: The proposal would create a new general business credit equal to 10% of the eligible expenses paid or incurred when onshoring a trade or business to the United States. “Onshoring” means reducing or eliminating a trade or business or line of business currently conducted outside the United States and starting up, expanding, or moving the trade or business within the United States, to the extent US jobs increase. The proposal would be effective for expenses paid or incurred (depending on whether taxpayer is subject to the cash or accrual method) after the date of enactment.
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