Senators Schumer, Manchin Introduce Inflation Reduction Act: The Proposed Act Includes a New Corporate Alternate Minimum Tax and Carried Interest Rules Changes Similar to the Past Versions of the Proposed 2021 Build Back Better Bill

Sullivan & Cromwell LLP - August 2, 2022

On July 28, 2022, Democratic Senators released updated tax provisions as part of the anticipated Inflation Reduction Act of 2022 (the “IRA”). The IRA would impose a 15% corporate alternative minimum tax on large corporations and contains changes to the “carried interest” rules under Section 1061 of the U.S. tax code. This memo discusses these proposals, which are similar to those in past versions of the Build Back Better Act which was proposed and passed by the House in November 2021.

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