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TaxBuzz Top 5 - Trump Makes Moves in Treasury Department, Cybertruck Now Eligible for EV Tax Credit & More

TaxBuzz Top 5 - Trump Makes Moves in Treasury Department, Cybertruck Now Eligible for EV Tax Credit & More

Happy New Year! Welcome to the first edition of TaxBuzz Top 5 in 2025.

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. Trump Makes Moves in Treasury Department with Key Tax Policy Pick

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Credit: Richard Sharrocks/Getty Images

President Donald Trump has selected Ken Kies, a veteran tax lobbyist, to lead the Office of Tax Policy at the Treasury Department as his administration gears up for a major push on tax cuts. The nomination signals Trump’s intent to accelerate his economic agenda, with sweeping changes to tax policy anticipated in the coming months, per Bloomberg.

Kies, a managing director of the Federal Policy Group, has a long history of working with both corporate clients and government officials on tax-related matters. His appointment comes as Republicans prepare to extend provisions from the 2017 Tax Cuts and Jobs Act (TCJA) and introduce additional tax reforms.

Trump has promised to make these measures a centerpiece of his second term, focusing on cuts to corporate tax rates and potential relief for middle-class taxpayers. While Kies is seen as a skilled negotiator, his history in the private sector may draw scrutiny from Democrats, who have voiced concerns about corporate influence over tax policy.

This appointment sets the stage for a contentious legislative battle, as Republicans aim to use their majority to advance tax reforms while Democrats push back against measures they argue disproportionately benefit the wealthy and corporations.

2. Tesla Cybertruck Secures $7,500 Federal EV Tax Credit for 2025

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Credit: Roman Tiraspolsky/Getty Images

The highly anticipated 2025 Tesla Cybertruck has officially qualified for the full $7,500 federal electric vehicle (EV) tax credit under the Inflation Reduction Act (IRA). This development positions the Cybertruck as one of the few electric pickups to meet the eligibility criteria for the incentive, making it more accessible to potential buyers.

To qualify for the credit, the Cybertruck meets stringent requirements regarding critical mineral sourcing and battery production. The credit applies to buyers who meet income thresholds and is limited to vehicles with a manufacturer's suggested retail price (MSRP) below $80,000 for SUVs, trucks, and vans. While Tesla has not released full details on the Cybertruck’s trim levels and pricing, early indications suggest that at least some configurations fall under the price cap.

According to a Car and Driver report, the Cybertruck's eligibility could give it a competitive edge in the growing EV market, particularly against rival electric pickups like the Ford F-150 Lightning and Rivian R1T. The federal tax credit is seen as a significant factor influencing EV purchasing decisions, potentially boosting Cybertruck sales as Tesla ramps up production amid founder Elon Musk's heavy involvement in the second Trump administration.

3. Iowa Implements Flat 3.8% Income Tax Rate for 2025

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Credit: Davel5957/Getty Images

Iowa residents will see a significant change in their income tax structure in 2025 as the state transitions to a flat income tax rate of 3.8%. This move, part of a series of tax reforms signed into law in 2022 by Gov. Kim Reynolds, makes Iowa one of several states adopting flat tax systems in recent years.

Previously, Iowa’s income tax system featured a graduated rate structure ranging from 4.4% to 6.5%. The new flat rate reduces the top rate while simplifying the tax code. The change is expected to lower tax liabilities for many Iowans and aligns with a broader Republican push for tax cuts and economic competitiveness.

The Iowa Capital Dispatch notes that supporters of the reform argue that the flat tax will attract businesses and residents to Iowa by offering a simpler and more predictable tax system. Critics, however, express concerns about potential revenue shortfalls and the impact on state services, particularly as the state phases out taxes on retirement income and implements other tax cuts.

According to state projections, Iowa’s general fund revenue will decrease by $1.9 billion by 2028 due to the cumulative effect of these tax changes. The state plans to offset the revenue loss through budget adjustments and economic growth.

The reform marks a major shift in Iowa’s tax policy, reflecting a growing trend among states aiming to streamline their tax systems and reduce income tax burdens.

4. Tullow Oil Wins $320 Million Ghana Tax Arbitration Case

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Credit: Renate Wefers/Getty Images

Tullow Oil’s shares rose sharply after the company announced a victory in a $320 million tax dispute with the Ghanaian government. The arbitration, decided by the London Court of International Arbitration, ruled in favor of Tullow, relieving the West Africa-focused company of a large financial burden.

The dispute centered on Ghana's assessment of tax liabilities linked to capital gains from transactions related to Tullow’s assets in the country. Tullow argued that the tax claims were unjustified under the terms of its petroleum agreements with Ghana.

In a statement shared by Bloomberg, Tullow said it was "pleased with the arbitration decision," which upholds its interpretation of the agreements. The company noted that the ruling reaffirms the stability and predictability of its operations in Ghana, a key region for its oil production.

The Ghana Revenue Authority has not yet commented on the ruling. Oil and gas industry analysts suggest the decision could influence future dealings between multinational corporations and host governments in resource-rich countries.

Tullow’s win proves the importance of clear contractual frameworks and arbitration mechanisms in resolving disputes within the energy sector. The outcome of this situation sets a precedent for international tax arbitration cases involving sovereign governments.

5. Thomson Reuters Acquires SafeSend to Boost Tax Automation Capabilities

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Credit: Lubo Ivanko/Getty Images

Thomson Reuters announced its acquisition of SafeSend, a leader in tax automation technology, signaling a major step toward enhancing its portfolio of solutions for tax and accounting professionals. The deal expands Thomson Reuters’ capabilities in streamlining the tax engagement and compliance process, a critical area for modern tax practices.

SafeSend specializes in automating document collection, assembly, and delivery for tax professionals, reducing time-intensive tasks and increasing efficiency. Its flagship product, SafeSend Returns®, has gained popularity for simplifying client communication and secure document handling.

Paul Fischer, President of the Legal Professionals segment at Thomson Reuters, stated, “The addition of SafeSend’s innovative solutions aligns perfectly with our mission to empower tax professionals with tools that enhance accuracy, compliance, and client service.”

The acquisition reflects Thomson Reuters’ ongoing strategy to integrate cutting-edge automation technologies into its product suite, following trends in digitization across the tax and legal industries. Tax firms are increasingly seeking software that reduces manual workloads while maintaining compliance in a rapidly evolving regulatory landscape.

Financial details of the transaction were not disclosed, but the move is expected to bolster Thomson Reuters’ competitive position.

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