A new bill containing $900 billion in new COVID-19 relief has been approved by Congress and is heading to the White House for President Trump’s signature. The White House has said that the President will sign the legislation once it reaches his desk.
The bill contains nearly 5,600 pages and covers a wide range of provisions for individuals and businesses. A few of the key provisions include:
- Businesses with forgiven PPP loans will be allowed tax deductions for the costs covered by such loans
- $284 billion allocated to a 2nd round of the Paycheck Protection Program (PPP2), which will have more limitations on eligibility than PPP1
- An extension of the Employee Retention Tax Credit through July 1, 2021, as well as an expansion to include those taxpayers who participated in the PPP program
- A $600 stimulus check for individuals making up to $75,000 per year and $1,200 for married couples making up to $150,000 per year, as well as a $600 payment for each child dependent
- Additional unemployment benefits of $300 a week, lasting through March 14, 2021
- An extension of the Pandemic Unemployment Assistance program, which provides coverage to self-employed and contract workers
- An extension of the Work Opportunity Credit through December 31, 2025
- An increased tax deduction of 100% for 2021 and 2022 business lunches, previously at 50%
- Breaks for renters and homeowners include $25 billion in rental relief and an extension of the eviction moratorium through Jan. 31, 2021
As we continue to work through the details of the legislation, we wanted to provide a couple of articles that help explain several key provisions in more detail.
- Forbes: Stimulus Payments, Paycheck Protection Program Expense Deductibility Headline Tax Changes In Latest COVID Relief Package
- Journal of Accountancy: COVID-19 Relief Bill Addresses Key PPP Issues
In the meantime, as you encounter questions that may impact your individual or business tax situation, please do not hesitate to contact your C&J engagement team.
