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Michels & Hanley CPAs LLP

$900 Billion Covid Relief Deal Reached Including Deductibility of PPP expenses

Business Relief, Tax Credit
Michels & Hanley CPAs, LLP COVID-19 –
12.21.20 | Client Alert

Congress leaders announced Sunday night that they reached a deal on a $900 billion COVID-19 relief package.

One of the biggest questions from small business owners who received PPP funds has (or is expected to) been answered. The provision, part of the year-end coronavirus relief bill expected to soon clear Congress, would ensure that PPP recipients can deduct the payroll costs and other expenses covered by forgiven loans. The move would reverse a Treasury Department ruling that denied the deductions.

The deal also includes a new round of direct payments to struggling Americans, as well as more money for businesses. The agreement includes stimulus checks of up to $600 per person for individuals earning $75,000 per year and $600 for their children – the same requirements as the first round of stimulus checks.

The deal also includes a new round of direct payments to struggling Americans, as well as more money for businesses. The agreement includes stimulus checks of up to $600 per person for individuals earning $75,000 per year and $600 for their children – the same requirements as the first round of stimulus checks.

Here are some key provisions that will be included as part of the agreement, according to a release Sunday evening from House and Senate leaders:

  • Aid for struggling small businesses, including more than $284 billion for forgivable Paycheck Protection Program loans and $15 billion “in dedicated funding for live venues, independent movie theaters, and cultural institutions.
  • $300 per week for enhanced unemployment insurance benefit.
  • $25 billion for rental assistance and an eviction moratorium extension
  • $82 billion for education providers like schools and colleges, including aid to help reopen classrooms safely.
  • $10 billion to help with childcare assistance.
  • $13 billion in increased Supplemental Nutrition Assistance Program and child nutrition benefits.
  • $7 billion to bolster broadband access to help Americans connect remotely during the pandemic  
  • Funding totaling in the billions of dollars to support coronavirus vaccine distribution, testing and contract tracing efforts and health care workers.
  • A tax credit “to support employers offering paid sick leave”

Lawmakers are expected to vote on the package beginning today, Monday, December 21st

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