Stimulus 2.0…Maybe
Updated as of 12/26
On Tuesday morning we had a Bill that looked promising. By dinner time, things got realllll weird.
UPDATE: The bill is finally passed!!!
Here are the Key Provisions for Our Business:
Taxpayers are getting another round of direct payments up to $600 per adult and child. (AGI thresholds are comparable to the threshold used in the spring). It appears that if you did not file your 2019 tax return, you’ll have to wait until tax season to get your additional $600.
Another round of PPP funds available. Businesses - except where restricted - can apply for more funding. Borrowers can receive a loan up to 2.5 times their monthly average payroll (3.5 times for restaurants), but the caps is $2,000,000. Approximately $284 Billion is available for the program. The biggest news for us is that the expenses paid with PPP funds will be deductible on the 2020 return. What a win!
The Employee Retention Tax Credit will go through July 1, 2021. The credit rate increases from 50% to 70% and the per employee limit increases from $10,000 per year to $10,000 per quarter.
The Bill extends the Work Opportunity Tax Credit for another 5 years. The Paid Leave Credits is until March 31, 2021.
Extra unemployment benefits of $300 per week will be until March 14, 2021.
$300 above the line charitable contribution and $600 if married filing joint.
Teachers are able to deduct $250 for PPE purchased in order to return back to their classrooms.
If you feel so inclined, you can find the original the bill language here: HR 133 Bill Final Language. See Division N for the section relevant to COVID funding.
Do you think we’ll get more COVID relief before 2021? Share your thoughts in the comments below.