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.
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.
The latest episode of Calfee NOW features a conversation between Congressman Mike Carey (R-OH, 15th District) and Calfee Government Relations and Legislation group members Dan Reinhard, Jamie Gregory, and Nick Bush.
While semiconductor manufacturers, local governments, and economic development entities await the guidance, rules, and application format for these incentives from the U.S. Department of Commerce, there are steps that companies can begin taking to shape their project to be competitive toward the national effort to bolster the U.S. semiconductor ecosystem and provide for a skilled workforce necessary to drive innovation for the next generation.
With billions of dollars in financial assistance available under the CHIPS and Science Act (CSA), companies should ensure they have a working understanding of the CSA, which is viewed as the catalyst for Intel’s decision to build multiple semiconductor fabrication plants northeast of Columbus, Ohio.
Calfee Connections blogs, vlogs, and other educational content are intended to inform and educate readers about legal developments and are not intended as legal advice for any specific individual or specific situation. Please consult with your attorney regarding any legal questions you may have. With regard to all content including case studies or descriptions, past outcomes do not predict future results. The opinions expressed may not necessarily reflect the viewpoints of all attorneys and professionals of Calfee, Halter & Griswold LLP or its subsidiary, Calfee Strategic Solutions, LLC.
Non-legal business services are provided by Calfee Strategic Solutions, LLC, a wholly owned subsidiary of Calfee, Halter & Griswold. Calfee Strategic Solutions is not a law firm and does not provide legal services to clients. Although many of the professionals in Calfee’s Government Relations and Legislation group and Investment Management group are attorneys, the non-licensed professionals in this group are not authorized to engage in the practice of law. Accordingly, our non-licensed professionals’ advice should not be regarded as legal advice, and their services should not be considered the practice of law.
Updates related to all government assistance/incentive programs are provided with the most current information made available to Calfee at the time of publication. Clarifications and further guidance may be disseminated by government authorities on an ongoing basis. All information should be reaffirmed prior to the submission of any application and/or program participation.
- Planning Before the Fall: Estate Planning Strategies to Consider Before December 31, 2025 (Or Sooner?)
- Keeping Things Confidential: How to Protect Sensitive Information in an M&A Deal – The Middle Market Deal Corner
- Proposed Regulations Provide Guidelines for CHIPS ITC
- Calfee NOW: Ohio State Representative Sean Brennan
- Tax Credits Under the CHIPS and Science Act: Proposed Rules Rollout
- The Time Is Now: U.S. Dept. of Commerce Accepting Applications for CHIPS Act Incentives
- A Primer on Purchase Price Adjustments – The Middle Market Deal Corner
- Calfee NOW: Congressman Mike Carey
- The Race to Secure CHIPS and Science Act Incentives: Are You Ready?
- A Variety Pack – Understanding The Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022
- November 2023
- October 2023
- July 2023
- June 2023
- April 2023
- March 2023
- February 2023
- January 2023
- November 2022
- September 2022
- August 2022
- May 2022
- April 2022
- February 2022
- January 2022
- November 2021
- October 2021
- July 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020