Breaking News
Congress Passes COVID Relief and Omnibus Spending Bills
· Yesterday, Congress passed a new relief package and omnibus spending bill.
· The President is expected to sign the full package soon.
· The administrations’ lawyers will then review it, which may take longer than expected due to the Christmas holiday (Trump signed a 7-day piece of legislation that keeps the government open in the meantime).
Some of what is included in the new package:
Paycheck Protection Program (PPP)
$284 billion for PPP (including a $15 billion carve-out for performance venues, independent movie theaters, and cultural institutions). Organizations may qualify for a second PPP draw of up to $2 million if they: employ 300 or fewer employees; and experience a decline in gross receipts of 25% in one of the four quarters in 2020 compared to the same quarter in 2019.
The bill expands the definition of "forgivable expenses" to include the costs of personal protective equipment (PPE) and workplace modifications. Forgiveness will be available through a short-form approval process for loans under $150,000.
Economic Injury Disaster Loan Grants (EIDL)
The package provides another $20 billion for EIDL grants.
Coronavirus Relief Fund Deadline
The final deal extends the deadline for Coronavirus Relief Fund spending by states to December 31, 2021. (This means that any COVID Relief Funding by the state this year does not need to be spent by the end of this year.)
Charitable Giving Incentives
Reinstatement of the $300 above-the-line charitable deduction for 2021 and $600 deduction for couples filing jointly in 2021. Tax filers who itemize and corporations that contribute to the charitable sector can deduct up to 100% of their income/revenue.
Unemployment Insurance Reimbursement
The bill extends federal funding to cover 50% of the COVID-related unemployment costs of self-insured organizations through March 14, 2021.
Employee Retention Tax Credit (ERTC)
Organizations that suffered a reduction in gross receipts of 20% or more in any quarter of 2020 are eligible for a 70% refundable tax credit covering wages of up to $10,000 per employee in each quarter (with a maximum of $14,000 per employee).
The relief bill also includes provisions for individuals, including extended enhanced unemployment benefits, direct payments to adults earning less than $99,000, rental assistance and an extended eviction moratorium.
***Once all details of the bill are released, you’ll receive another email from the Chamber with live links to applications and resources.***
Questions? Email the director HERE.
