The House Committee on Appropriations prepared a summary of the new $900 billion COVID-19 Relief Provisions that can be found here.
The following are the highlights:
- Expenses incurred using PPP funds are tax-deductible.
- $284.45 billion allocated to a 2nd round of Paycheck Protection Program (“PPP”)
- 300 or fewer employees.
- Show a 25% reduction (or more) in gross receipts in any quarter of 2020 compared to the same quarter in 2019.
- Cap of $2 million
- The rules of the 2nd round of PPP are like the 1st round of PPP. The following additional expenses have been added as allowable and forgivable uses of PPP (60% must be spent on payroll):
- Covered operations expenditures. Payment for any software, cloud computing, human resources, and accounting needs.
- Covered property damage costs.
- Covered supplier costs.
- Covered worker protection expenditures.
- Entities in the Accommodation and Food Services (NAICS code 72) can receive up to 3.5X of average monthly payroll costs (compared to 2.5X for other entities).
- Families First payroll tax credits have been extended through March 2021.
- Direct stimulus checks to individuals. The checks are $600 per taxpayer ($1,200 for married filing jointly), in addition to $600 per qualifying child. The credit phases out starting at $75,000 of modified adjusted gross income in 2019 ($112,5000 for heads of household and $150,000 for married filing jointly).
- $15 billion in grants for shuttered venue operators (eligible live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, or talent representatives who demonstrate a 25% reduction in revenues).
- An additional 3 months of debt relief for loans under the SBA 7(a), 504, and microloan programs starting in February 2021. Some borrowers will receive an additional 5 months.
- Repeal of EIDL Advance Deduction. PPP borrowers will be paid back if the EIDL Advance was deducted from their PPP forgiveness.
- Simplified application for PPP forgiveness under $150,000.
- Unemployment benefits up to $300/week will be extended until March 14th.
- Business meals provided by a restaurant are now 100% deductible for 2021 and 2022.
- The 1st round of PPP expenses is tax-deductible.
The legislation was passed by both the House and the Senate late Monday night. President Trump has signed the bill into law. More details and clarification to follow.