Calfee Connections

Are you a California employer? Or are you a multi-state employer operating with some employees in California? Effective July 1, 2024, new Section 6401.9 of the California Labor Code requires nearly all California employers to implement a Workplace Violence Prevention Plan and corresponding training program. With very limited exceptions, California employers must adopt and effectuate a WVPP.

On the latest episode of Calfee NOW, Michael W. Bowen, Partner with the firm's Government Relations and Legislation practice, and Michael G. VanBuren, Partner with the firm's Health Care Regulation practice, spoke with Steve Millard, President and CEO of the Greater Akron Chamber.

The Tax Cuts and Jobs Act (TCJA) of 2017 doubled the 2018 basic exclusion amount from $5.6 million per person to $11.18 million per person. In 2023, an individual’s basic exclusion amount is $12.92 million and $25.84 million collectively for a married couple. This high basic exclusion amount means that many individuals will not need to pay an estate tax at death if they die in 2023.

However, on January 1, 2026, the basic exclusion amount is legislatively scheduled to be reduced to $5 million per person adjusted for inflation to an estimated $7 million per person or $14 million collectively for a married couple. This is almost $6 million less per person than today.

Now is the time for individuals with a net worth of $7 million or more and married couples with a net worth of $14 million or more to minimize their estate tax exposure.  

As a business owner considering a sale, there is a laundry list of things that might keep you up at night, and confidentiality is likely at or near the top of that list. A business has many different critical parties who may be concerned about the fact that the ownership is pursuing a sale, including employees, customers, and suppliers. At what point do you make them aware that a transaction is taking place?

Exploring a deal with a potential buyer will also inevitably require the Seller to share the Company’s sensitive/confidential information. What happens when a deal falls through (which, unfortunately, is not an unusual occurrence for a variety of reasons) and the potential buyer is now in possession of the Company’s confidential information? These concerns can have a major impact on the viability of a deal and on the go-forward success of the Company.

On June 14, the U.S. Department of Treasury and the Internal Revenue Service released proposed regulations that seek to provide guidance for taxpayers looking to make use of Section 48D Advanced Manufacturing Investment Credit (CHIPS ITC) benefits.

On the latest episode of Calfee NOW, Raymond Tarasuck, Senior Counsel with the firm's Government Relations and Legislation practice, and Michael Bowen, Associate Attorney with the firm's Government Relations and Legislation practice group, spoke with Ohio State Representative Sean Brennan.

Earlier this spring, the Department of Treasury published proposed rules with respect to the advanced manufacturing investment credit established under the CHIPS and Science Act. While these are just proposed rules surrounding the potential tax credit and are not yet set in stone, companies and manufacturers may already have questions about whether they stand to benefit. 

For companies that wish to receive manufacturing incentives in connection with the CHIPS and Science Act, the newly created CHIPS Program Office (CPO) at the U.S. Department of Commerce will begin accepting applications this spring.

Transactions between private companies (and in some contexts where public companies are involved as well) very often include an “adjustment” to the purchase price paid by the buyer of the business. While the components of a purchase price adjustment can take many forms depending on the deal structure and the valuation method that the parties have agreed upon, the general goal of such adjustments is to ensure that the purchase price for the deal reflects the target company’s financial condition at closing.