The Inflation Reduction Act of 2022 imposes a new 1% excise tax on certain share repurchases or so-called stock buybacks of more than $1 million in aggregate per tax year. This excise tax is not deductible. The tax is imposed primarily on domestic corporations with shares that are traded on an established securities market. It also applies to certain domestic subsidiaries that purchase the stock of its non-U.S. corporate parent with shares that are traded on an established securities market.

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