Infrastructure Act’s tax provisions

Early end of ERC, cryptoasset reporting are among act’s changes.
By Alistair M. Nevius, J.D., and Ken Tysiac.

The employee retention credit (ERC) was terminated early and broker reporting of cryptoasset transfers will be required as a result of the Infrastructure Investment and Jobs Act, P.L. 117-58, that was signed into law by President Joe Biden on Nov. 15, 2021. The legislation was approved in the House on Nov. 5, 2021, after passing the Senate in August.

Employee retention credit

The act made wages paid after Sept. 30, 2021, ineligible for the ERC, except for wages paid by an eligible recovery startup business, which retained the credit's statutory sunset of Dec. 31, 2021.

Cryptoasset reporting

Section 80603 of the act imposes new cryptoasset information reporting requirements on brokers. The Sec. 6045(c)(1) definition of "broker" is expanded to include anyone who for consideration effectuates "transfers of digital assets on behalf of another person." For these purposes, "digital asset" is defined as "any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology."

The legislation amends Sec. 6045A to require brokers to provide information returns reporting any transfers of digital assets to accounts that are not maintained by a broker. These changes apply with respect to returns and statements required to be filed or furnished after Dec. 31, 2023.

Disaster relief

The legislation modifies the automatic extension of certain deadlines for taxpayers affected by federally declared disasters in Sec. 7508A, which was enacted in the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, P.L. 116-94. The definition of a disaster area in Sec. 7508A(d)(3) is amended to mean "an area in which a major disaster for which the President provides financial assistance under section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5174) occurs." Previously, that paragraph cross-referred to the definition in Sec. 165(i)(5)(B).

Other tax provisions

The act includes other tax provisions, including extension of various highway-related taxes, and extension and modification of certain Superfund excise taxes. It also allows private activity bonds for qualified broadband projects and carbon dioxide capture facilities.

  • Infrastructure Investment and Jobs Act, P.L. 117-58

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