Guidance on the CHIPS Tax Credit is available. The “Creating Helpful Incentives to Produce Semiconductors and Science (CHIPS) Act of 2022” established an advanced manufacturing investment credit. Treasury and the IRS are now releasing rules for the credit, which is worth 25 percent of the value of qualified investments in domestic semiconductor chip production. The rules outline how the government can recover funds from recipients if they work with a foreign entity of concern.
Treasury and IRS seek feedback on guidance for NFTs. The IRS will soon release guidance on the tax treatment of nonfungible tokens (NFTs) as collectibles. Before that, it has requested comments on the treatment of NFTs as collectibles and shared that, for now, it will rely on a “look-through” analysis. In short, an NFT is treated as a collectible if the NFT’s associated right or asset falls under the definition of a collectible in the tax code.
Today on Capitol Hill. The Senate Finance Committee will hear from US Department of Health and Human Services Secretary Xavier Beccera on the department’s budget request.
Tax relief for Delaware workers. Reflecting Democratic Gov. John Carney’s budget proposal for the year, lawmakers have introduced legislation that would increase the standard deduction for personal income taxes by 75 percent in 2024 and increase the state’s refundable Earned Income Tax Credit (EITC) to 7.5 percent of the federal EITC for 2023.
Property tax relief in Arkansas. Lawmakers passed a bill to raise the homestead property tax credit from $375 to $425. The legislation will cost Arkansas $34 million next year. Republican Gov. Sarah Huckabee Sanders is expected to sign the bill.
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