COVID-19 RELIEF PACKAGE
As part of the Consolidated Appropriations Act, 2021 President Trump approved a $900 billion Covid-19 Relief package on December 27, 2020. Some of the highlights of the legislation are as follows:
- PPP loans will not be included as taxable income and the expenses the PPP funds were utilized for are now tax-deductible.
- Streamlined forgiveness application for PPP loans less than $150,000.
- $284 billion of additional funding for new PPP loans.
- For qualifying businesses with less than 300 employees and a 25% reduction in revenues in any 2020 quarter compared to the same quarter in 2019, a second PPP loan may be allowed.
- Increased PPP loan amounts for those in the hospitality industry.
- EIDL advances will no longer reduce PPP loan forgiveness.
- The addition of other expenses for which PPP funds can now be used including certain costs of operations and costs for PPE required to comply with government standards.
- Extension of unemployment benefits.
- Funding for Covid testing, vaccines, and distribution.
- 100% expensing of corporate meal expenses for businesses incurred after December 31, 2020.
- Second round of stimulus payments to qualifying individuals and families.
- $300 above the line charitable contribution deduction for nonitemizers is in place from the Cares Act and increases to $600 for married filing joint taxpayers in 2021.
Please continue to monitor our website where we will continue to communicate changes based on the most recent legislation.