Bi-Partisan COVID-19 Stimulus Package Released


This afternoon the final text of the bi-partisan stimulus package was released. The legislation comes as part of the full government funding package. The entire measure must go through congressional procedure and to the President for signature, but since the points have been negotiated heavily and quick action will be required, it is anticipated that the measure will become law quickly.

Key provisions contained in the relief bill and additional tax extenders are as follows:

  • Renewal of pandemic unemployment benefits for $300 per week from December 26, 2020 through March 14, 2021.
  • Extension of required sick leave and expanded Family Medical Leave Act that were provided by the Families First Coronavirus Response Act through March 31, 2021.
  • Additional stimulus payments of $600 per person, plus additional benefits for eligible dependents. The stimulus payments will phase out with the same limits as the CARES Act payments for individuals making more than $75,000 ($150,000 for married filing jointly) in 2019.
  • EIDL Advances and payments to SBA loans made by CARES Act Section 1112 will be excluded from taxable income.
  • Full deductibility of Paycheck Protection Program (PPP) covered expenses.
  • Further simplified forgiveness of PPP loans under $150,000.
  • Choice of PPP covered periods between 8 and 24 weeks.
  • Additional PPP funding, generally for businesses that show a 25% reduction in gross receipts from 2019 to 2020, with less than 300 employees.
  • Grants for entertainment venues that have been unable to operate due to pandemic restrictions.
  • Permanent 179D tax credit for energy efficient building construction.
  • Extension of the New Market Tax Credit program through 2025.
  • Expansion of the Employee Retention Credit allowed under the CARES Act
  • 100% business meal deduction for 2021 to 2023.

Please reach out to your HTB advisor to further discuss these provisions and their application to your situation. The legislation is still in draft form and must be finalized and signed by the President before it will become law. HTB is closely monitoring the legislative changes and will provide you with in-depth analysis of these provisions as they are enacted.