U.S. House Passes Bipartisan Infrastructure Bill

U.S. House Passes Bipartisan Infrastructure Bill

On Friday, November 5, 2021, the U.S. House of Representatives passed H.R. 3684, the “Infrastructure Investment and Jobs Act”, in a 228 to 206 bipartisan vote. The Senate had approved the exact version of the bill, which is now ready for the President’s signature.

The 2,700-page bill, which funds investment in improvements to the country’s roads, bridges, highways, and Internet connections, also includes a few tax-related provisions. For example, the legislation includes a provision that amends the Internal Revenue Code (IRC) Section 6045 to expand information reporting requirements to include brokers or any person responsible for regularly providing any service effectuating transfers of digital assets, including cryptocurrency, on behalf of another person. The measure also adds digital assets to current rules that require businesses to report cash payments over $10,000. This provision applies to returns required to be filed after December 31, 2023.

The bill also includes a provision that amends IRC Section 3134 to terminate the employee retention credit on October 1, 2021, three months earlier than the current January 1, 2022, end date. The provision applies to calendar quarters beginning after September 30, 2021.

Another revenue raiser included is a provision that modifies the IRC Section 430(h)(2)(C)(iv) table of applicable minimum and maximum percentages with respect to specific pension plans, known as “pension smoothing,” which is estimated to raise approximately $2.9 billion over a 10-year period by reducing the level of deductible employer pension contributions required under the pension funding rules. These amendments apply to plan years beginning after December 31, 2021.

The bill also reinstates and modifies some expired Superfund excise taxes imposed on the production of specified chemicals through December 31, 2031, and extends various highway-related excise taxes (including fuel taxes and heavy vehicle use taxes) and related exemptions for six years.


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