President Joe Biden on March 31 announced a $2 trillion "American Jobs Plan" focused on infrastructure and other spending initiatives, including tax incentives for clean energy and domestic manufacturing. He also proposed a 'Made in America Tax Plan' containing corporate tax increase proposals designed to offset the costs of the American Jobs Plan infrastructure spending. In advance of the President’s remarks, the White House released an outline of specific infrastructure proposals and corporate tax increase offsets.
Action item: These proposals would have broad economic impacts across sectors. Some businesses may benefit from enhanced or new credits or similar incentives, while many others may face potentially significant tax increases. Given the range of potentially significant consequences, businesses should analyze these proposals and model their impact. Businesses also should consider potential changes to their manufacturing or operating models consistent not only with the specific tax incentives under consideration but also from the perspective of active stakeholders — both shareholders and customers — increasingly interested in the actions a business may be taking or considering in the environmental area. Many businesses will want to consider how to engage with policymakers on these taxes and ESG issues.
This PwC Insight focuses on the tax-related aspects of President Biden’s plan related to environmental, social, and governance (ESG) issues.