Robert Kovacev discussed several of the consequential developments in federal tax policy in the first half of 2023, including the clawing back some of the funding under the Inflation Reduction Act (IRA), rescinding of the Limit, Save, Grow Act which would have tied an increase in the limit on the federal government's borrowing authority to a full clawback of the increased Internal Revenue Service (IRS) funding for enforcement and operations support. It would have additionally repealed much of the IRA's spending, tax credits, incentives, and grants for renewable energy projects, electric vehicles, and environmental justice initiatives. The rescinding of IRS funds by the debt limit deal shouldn't shake up the agency too much, according to Kovacev. "In the short run, I don't think it's going to have any change in what the IRS is doing with the additional funding, and long term, who knows, because depending on what happens in the elections in [2024], it can be completely reversed," Kovacev said. In terms of research and development (R&D) tax breaks, he acknowledged that despite bicameral, bipartisan, and business support for extending the R&D tax credits, lawmakers need to agree on a legislative vehicle to get the proposal to President Biden's desk. "It's one of those things where everyone agrees it should happen," Kovacev said. "If Congress can find the right vehicle, then it will be fixed. If not, then this will have a damaging impact on technology and innovation in the U.S."