IRS Security Summit, Maine Historic Rehabilitation Tax Credit, and the New IRS Commissioner
Probity Tax Recovery is a tax consulting firm specializing in tax credits and incentives for small to mid-sized businesses. We work with business owners and their CPAs to identify tax credits and incentives while saving them time and money. As of November 1, 2024, Probity began operating as a division of MS Consultants. Read more about the exciting news here.
Tax Policy/News:
July 29: IRS, Security Summit remind tax pros they must have a Written Information Security Plan to protect client data
The IRS and its Security Summit partners issued a reminder to tax professionals about the legal requirement to maintain a Written Information Security Plan (WISP) under the Gramm-Leach-Bliley Act.
As part of the “Protect Your Clients; Protect Yourself” campaign, the IRS emphasized that tax professionals are considered financial institutions and must implement safeguards to protect client data. A WISP should address employee training, information systems, and system failure management. IRS Publication 5708 offers a 28-page template to help firms, especially smaller practices, develop their plans.
The IRS also recommends creating a data theft response plan and understanding FTC breach reporting requirements, particularly when incidents affect 500 or more individuals. Additional resources include Publications 5709, 5293, and 4557, along with guidance from the National Institute of Standards and Technology.
July 28: New IRS commissioner plans implementation of Trump tax bill
Newly appointed IRS Commissioner Billy Long outlined his vision for the agency and the implementation of the One Big Beautiful Bill Act (OBBBA) during his first public address at the National Association of Enrolled Agents' tax summit.
Long, a former congressman and auctioneer with no formal tax background, emphasized his commitment to cultural change within the IRS, including direct engagement with employees and improving taxpayer services. He acknowledged the complexity of implementing the OBBBA, which includes extensive rulemaking and coordination with Treasury officials.
Long reassured stakeholders that the agency is on track for the upcoming tax season and highlighted the importance of maintaining transparency and responsiveness. He also introduced a new ethos for the IRS—“UFO: upbeat, friendly and open”—and expressed a desire to foster stronger partnerships with both employees and taxpayers.
July 26: Advocates say recent state historic tax credit changes will speed up housing development
Maine lawmakers have approved significant changes to the state’s historic rehabilitation tax credit program, doubling the annual cap developers can claim from $5 million to $10 million for each of the first two years of a project.
This marks the first increase since the program’s inception in 2008 and is expected to accelerate the redevelopment of historic buildings into housing, retail, and office space. More than 40% of projects funded through the credits have resulted in new housing, including the recent completion of Picker House Lofts in Lewiston, which added 72 income-restricted apartments.
Plans are underway to redevelop the remainder of the Continental Mill into nearly 400 additional units. A new law also boosts available credits for developers building affordable housing in rural Maine.
July 25: IRS may eliminate non-English tax services
The Internal Revenue Service is reportedly considering the elimination of its multilingual services in response to a March executive order from President Donald Trump designating English as the official national language.
Attorney General Pam Bondi issued guidance earlier this month directing federal departments to phase out non-English offerings and redirect resources toward English-language acquisition and assimilation programs. The IRS currently provides tax information in 20 languages, including over 100 forms in Spanish, along with translation services and multilingual social media accounts.
The Treasury Department has indicated that the IRS will reevaluate its commitment to supporting non-English-speaking taxpayers, though no formal decisions have been announced.
Economic News/Policy:
July 29: Senate introduces bill for tariff rebate checks after Trump suggestion
Senator Josh Hawley (R-Mo.) has introduced the American Worker Rebate Act of 2025, proposing tariff rebate checks for American families following President Donald Trump's recent comments about a potential rebate from tariff revenue.
The bill would provide a minimum of $600 per adult and dependent child, totaling $2,400 for a family of four, with potential increases if tariff revenues exceed expectations. Rebates would be reduced for joint filers earning over $150,000 and single filers earning over $75,000. The proposal follows a reported $27 billion in customs duties collected in June, a 301% increase from the previous year.
While the bill aims to return tariff-generated wealth to U.S. households, experts warn it could exacerbate inflation and increase the federal deficit, which is already projected to grow by $3.4 trillion through 2034 under Trump’s recently enacted tax-and-spending package.
July 29: Government shutdown talk is starting early ahead of a difficult funding fight in Congress this fall
With over two months remaining in the fiscal year, partisan tensions are already escalating in Washington over the potential for a government shutdown. The early finger-pointing reflects deep divisions between a Republican-controlled Congress aiming to reshape federal spending priorities and Democratic leaders pushing for bipartisan cooperation.
The current $1.7 trillion funding resolution expires on September 30, and while President Trump has proposed a similar total for the next fiscal year, his plan reallocates funds significantly toward defense and border security, cutting back on health, education, and foreign aid. The House has passed two of the twelve required appropriations bills, while the Senate has yet to approve any.
Democrats, frustrated by recent Republican actions—including rescinding $9 billion in previously agreed-upon funding—warn that the GOP’s unilateral approach could derail the process. Meanwhile, Republicans argue that Democrats are positioning for a shutdown to obstruct their agenda, even as bipartisan support will be necessary to pass final legislation.
Energy and Environmental Policy/News:
July 29: Big Beautiful Bill doesn't mean the immediate end of energy credits
Despite concerns that the One Big Beautiful Bill Act (OBBBA) would repeal clean energy tax credits established under the Inflation Reduction Act, experts say the credits remain largely intact, though subject to a gradual phaseout.
Bryen Alperin of Foss & Co. notes that while benefits will taper after 2027, the core framework is preserved, offering clarity and stability for investors. Transferability of credits and direct pay options remain available, and many projects initiated before mid-2026 will be grandfathered under existing rules, allowing them to qualify for full-value credits through 2029.
The legislation, advanced via budget reconciliation, reflects Republican priorities such as fiscal restraint and reduced reliance on China, but avoids a disruptive repeal of green incentives. Alperin emphasizes that the act provides a predictable policy landscape, enabling investors to plan and finance projects with confidence.
July 23: Electric utilities will invest more than $1.1T by 2030 to meet demand growth: EEI
U.S. investor-owned electric utilities are projected to invest over $1.1 trillion between 2025 and 2029 to address surging electricity demand, according to a report from the Edison Electric Institute (EEI).
This marks a sharp rise in capital expenditures, which totaled $1.3 trillion from 2015 to 2024, making the sector the highest-spending in the U.S. economy. The growth is driven largely by increasing power needs from data centers, with AI-related demand expected to rise significantly. In 2024 alone, utilities added 52 GW of new generating capacity—an 11% increase from 2023—primarily from solar and energy storage.
Solar installations grew 63% to 32,486 MW, while energy storage rose 54% to 11,534 MW. Conversely, new natural gas capacity fell 79%, and wind additions also declined, signaling a shift in generation trends. The report also highlights broader drivers of demand, including transportation electrification, manufacturing reshoring, and economic development.
July 23: Navigating the One Big Beautiful Bill Act: Critical Updates to Clean Energy Credits
The One Big Beautiful Bill Act (OBBBA), signed into law by President Donald J. Trump on July 4, 2025, introduces sweeping changes to clean energy tax incentives originally established under the Inflation Reduction Act.
Key updates include accelerated construction deadlines for wind, solar, and hydrogen facilities, with wind and solar projects required to begin construction by July 4, 2026, and be placed in service by December 31, 2027, to qualify for tax credits. The legislation also imposes strict restrictions on “prohibited foreign entities” (PFEs), barring them and their affiliates from claiming credits and requiring developers to meet specific material sourcing thresholds.
Additional changes affect advanced manufacturing and clean transportation fuel credits, including phase-outs and geographic sourcing requirements. A related executive order issued by President Trump on July 7, 2025, further complicates compliance by directing the Treasury to revise guidance on construction eligibility, potentially impacting investor confidence and project timelines.
Technology:
July 23: Trump AI plan and orders aim to deregulate, police bias, and compete globally
President Donald Trump unveiled a comprehensive AI Action Plan and signed three executive orders aimed at bolstering U.S. leadership in artificial intelligence.
The 28-page plan, structured around innovation, infrastructure, and international diplomacy, outlines over 90 federal actions to accelerate AI adoption, reduce regulatory barriers, and ensure government procurement of ideologically “neutral” AI. One executive order, “Preventing Woke AI in the Federal Government,” mandates guidance for assessing AI systems based on a new federal definition of “unbiased AI.”
The plan also targets state-level AI regulations, promotes open-source systems, and recommends widespread access to large language models across federal agencies. While industry leaders praised the initiative for prioritizing U.S. competitiveness and infrastructure, civil society groups criticized it for potentially suppressing diverse perspectives and failing to address AI-related harms.
For Fun:
July 23: Meet Aeneas: the AI that can fill in the gaps of damaged Latin texts
Aeneas, a new AI model developed by researchers from the UK, Greece, and Google DeepMind, is capable of restoring missing sections of ancient Latin inscriptions, estimating their age, and identifying their origin.
Trained on a dataset of 176,861 inscriptions, Aeneas uses three neural networks to perform its tasks and provides supporting evidence by retrieving similar inscriptions from its database. In tests involving 23 epigraphers, the model significantly improved accuracy when used in tandem with human experts, dating inscriptions within 13 years and enhancing restoration and origin identification.
Aeneas also demonstrated strong performance on well-known texts like Res gestae divi Augusti and proved useful in analyzing large volumes of data, though its effectiveness may be limited for rare or unique inscriptions due to its smaller training dataset.
July 22: The optimistic brain: scans reveal thought patterns shared by positive thinkers
A recent study published in Proceedings of the National Academy of Sciences reveals that optimistic individuals exhibit similar patterns of brain activity, particularly in the medial prefrontal cortex (MPFC), which is associated with emotional processing and future-oriented thinking.
Using functional magnetic resonance imaging (fMRI), researchers at Kobe University scanned 87 participants as they imagined future events categorized as positive, neutral, or negative.
The findings showed that optimists not only shared neural responses but also processed positive and negative events in distinctly different ways—vividly imagining positive scenarios while abstracting negative ones to create emotional distance. These insights could inform mental-health research, especially in understanding conditions like depression, which are often linked to pessimistic thought patterns.