Infrastructure Investment and Jobs Act: What You Need to Know

The Infrastructure Investment and Jobs Act (IIJA) is designed to infuse a massive investment in infrastructure projects. Within the bill, there are a few tax provisions you should be aware of.

IIJA Tax Provisions

Cryptocurrency Reporting

New reporting requirements for cryptocurrency brokers resulted from a concern that cryptocurrency transactions were not being reported as taxable income. This additional income will help offset the cost of the bill.

Employee Retention Credit Termination

The IIJA terminates the Employee Retention Credit (ERC) created by the CARES Act earlier than initially planned. The American Rescue Plan Act (ARPA) had extended the credit to eligible employers for the third and fourth quarters of 2021.

Under the new law, the ERC — which for 2021 is worth up to $7,000 per qualifying employee per quarter — is no longer available for wages paid after September 30, 2021 (rather than December 31, 2021), except for the so-called “recovery startup businesses.”

The ARPA generally defines recovery startup businesses as those that began operating after February 15, 2020, and have annual gross receipts for the three previous tax years of less than or equal to $1 million. These employers can claim the ERC for up to $50,000 per quarter for the third and fourth quarters of 2021 without showing suspended operations or reduced receipts.

Contributions to Water and Sewer Utilities

A regulated public utility that provides water or sewage disposal services can now benefit from a tax-free contribution of capital if it meets specific requirements.

Extension of Excise Taxes

Excise taxes on fuels, diesel and special fuels, retail sales of heavy trucks and trailers, and tires, that were set to expire after September 30, 2022, have been extended to September 2028.

These are just a few highlights of the legislation. Download the Infrastructure Investment and Job Act Overview for more details.