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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The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ashmore Consulting LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Ashmore Consulting LLC or other tax professional prior to taking any action based upon this information. Ashmore Consulting LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
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