The pandemic caused a major disruption in the US workforce. The Bureau of Labor Statistics reported August 2022 unemployment at 3.7%, roughly 6 million unemployed workers. Employers are struggling to fill 11 million open positions. At the same time, there are 2.5 million fewer people in the workforce post-pandemic.

President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law on August 16, 2022. The IRA is a skinny version of the Build Back Better Act, which was passed by the House but failed to pass in the Senate last fall.  The 273-page IRA addresses climate, energy, healthcare, taxes, and IRS funding.  In this article, we are only covering a few areas that might affect our clients. We are also including a links to several articles that cover additional provisions. 

Valuations for most businesses have dramatically increased over the last few years. There is plenty of activity and cash in the M&A market. Industries (like engineering) have become targets for venture capital pushing valuations even higher. Many of the buy-sell agreements were set up when the business started, sometimes decades ago, and are no longer…
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Governor Ivey recently signed Senate Bill 261 into law, which increases the tax credit for contributions made to Scholarship Granting Organizations (“SGO”).  Effective in 2022, an Alabama taxpayer may claim up to 100% of the individual’s Alabama tax liability for contributions made to an SGO, not to exceed $100,000 per year. Prior to the 2022 amendment, the credit was limited to 50% of the taxpayer’s Alabama tax liability with a cap of $50,000.  For C corporations, the credit was also increased from 50% to 100% of the Corporation’s Alabama tax liability and is not subject to the $100,000 per year cap.