“Additional Coronavirus Response and Relief” Package – Stimulus for Businesses and Nonprofits

**Information as of January 7, 2021**

Included in the recently passed and signed 2021 annual appropriations bill was a myriad of various COVID-19 stimulus and relief provisions. Rather than being a separate bill with a clever acronym, this relief was included in the overall appropriations package of over 5,500 in an effort to expedite its passage. The size and sprawling nature of this was heavily criticized, however, for businesses and nonprofit organizations, the three most crucial parts of this bill are the “COVID Related Tax Relief Act of 2020,” “Taxpayer Certainty and Disaster Tax Relief Act of 2020,” and the “Economic Aid to Hard-Hit Small Businesses, Nonprofits & Venues Act.”

The “COVID-Related Tax Relief Act of 2020” included the passage of additional recovery rebates for taxpayers, a much-needed clarification on the tax treatment of PPP loan expenses & COVID-19 related grants and the extension of payroll tax credits for providing paid sick and family leave.

The “Taxpayer Certainty and Disaster Tax Relief Act of 2020” included the passage of “extenders” on many popular tax provisions which are typically extended at year ends, such as energy and work opportunity tax credits & tax provisions like the deduction for mortgage insurance premiums, but more importantly, an extension of many CARES Act tax provisions and an expansion of the Employee Retention Tax Credit – many employers who were previously unable to take advantage of this program may now be eligible in 2020 or 2021.

The “Economic Aid to Hard-Hit Small Businesses, Nonprofits & Venues Act” included an expansion of PPP eligible expenses and eligible borrowers, covered period flexibility, a simplified forgiveness application and the creation of “second-draw” PPP loans for certain eligible borrowers.

Our webinar discussed these important changes and updates. Our coverage included:

  • Changes to the PPP Forgiveness Process
  • Increased PPP Eligible Expenses
  • Second Draw Paycheck Protection Program Loans
  • PPP Taxation Updates
  • Changes to the Employee Retention Tax Credit for 2020
  • Expansion to the Employee Retention Tax Credit for 2021
  • Expansion of paid sick leave tax credits
  • Other critical updates for employers, businesses and organizations
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