Biden likely to raise corporate tax rate

By Robert Freedman | Construction Dive

The Biden administration will likely revisit the Tax Cuts & Jobs Act, the outgoing administration’s signature legislative achievement enacted in 2017, to free up money for infrastructure and other priorities, analysts say.

Expect the top corporate tax rate to rise to 28%, from 21%, and a new 15% minimum tax on book income for companies with net income of more than $100 million but owe no U.S. income tax, effectively an alternative minimum tax on companies.

The new tax on book income would complicate tax strategies by making it harder for companies to take advantage of targeted incentives, such as the immediate deduction for short-lived property and equipment investments. But companies might be able to offset some of these missed opportunities by tapping foreign tax credits and net operating loss carryovers, analysts say.

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