As taxpayers anxiously await another round of federal coronavirus relief, important decisions like tax projections, budgeting, workforce planning and other 2021 business strategies all hang in the balance.
Members of Congress have expressed their intent to pass another stimulus bill before the end of the year. While we do not know what that final legislation will contain, a $908 billion proposal released this week by a bipartisan group of senators and representatives gives us a glimpse into what is being considered.
While differing plans have been proposed by the Treasury Secretary and the White House, highlights of this proposed package include:
- Additional SBA funding to allow hard-hit small businesses to apply for a second forgivable Paycheck Protection Program (PPP) loan (Proposed eligibility requirements are 300 or fewer employees and 30% revenue loss in any quarter of 2020.)
- Tax deductibility of business expenses paid for with PPP funds (nondeductible by current IRS guidance)
- Expansion of forgivable PPP expenses to include supplier costs and investments in facility modifications and personal protective equipment (PPE) to operate safely
- Additional $35 billion of Provider Relief Fund (PRF) payments to healthcare providers
- Relaxed telehealth requirements extended through December 31, 2021.
The bill also contains support for state and local governments, extended unemployment benefits, funding for low-income and minority communities, rental assistance and other relief provisions.
Grassi’s Tax and Crisis Response & Recovery professionals will keep you informed of new developments as the stimulus talks continue in Congress.
If you have any questions about planning your tax, business or other financial strategies amidst this ongoing uncertainty, please contact your Grassi advisor or Jeffrey Cohen, Tax Services Leader.