The new Inflation Reduction Act includes several new and expanded business tax deductions and credits. Are small businesses aware of the new tax breaks? Will they take advantage of them? Intuit QuickBooks commissioned a survey of 1,000 small businesses throughout the US to find out.1
Three-quarters of small businesses are aware of new tax breaks
The Inflation Reduction Act became law on August 16, 2022. The new small business tax breaks include:
- Research and development payroll tax credit increased by $250,000 to $500,000.
- New solar-power tax credit covers 30% of the cost of switching to solar power.
- New energy-efficiency tax deduction allows small businesses to deduct up to $1 per square foot of their business for sustainability upgrades.
Our research reveals the majority of small businesses are aware of the changes. Just one in four admitted they hadn’t heard about the new tax breaks yet—as the chart below shows.