U.S. IRS and Treasury Issue Final Regulations on Excise Tax on Repurchase of Corporate Stock

The U.S. IRS and Treasury Department have issued the final regulations on the Excise Tax on Repurchase of Corporate Stock (TD 10037), which were published in the Federal Register on 24 November 2025. Introduced by the Inflation Reduction Act, the excise tax on stock repurchases is equal to 1% of the aggregate fair market value of stock repurchased by certain covered corporations during the taxable year, subject to adjustments. The final regulations are effective on 24 November 2025 but gener…