Please note that as of the date and time of this article, the Consolidated Appropriations Act, 2021 has yet to be signed by President Trump. Until then, the content shown below is unofficial and is not considered law. Once finalized, we will provide summarized detail for these items listed.
Phase 4 COVID-19 Relief Bill (Tentative)
After months of Pontificating, Postponing and mostly Politicizing (that’s my PPP acronym), the US Congress has passed the 5,593 page Consolidated Appropriations Act, 2021, an emergency $900 billion COVID-19 relief bill to help most Americans (business & individuals) while we get continue to struggle through this pandemic.
The sections of the bill that will have the greatest impact for individuals will be:
- $600 Refundable tax credit
- $300 federal unemployment compensation extension
- Repayment period for deferred payroll taxes pushed to December 31, 2021
- Personal protective equipment (PPE) treated as eligible expenses for purposes of Educator Expense Deduction
The sections of the bill that will have the greatest impact for businesses will be:
- PPP (1 & 2) loan forgiveness will not be included in taxable income
- Other COVID-19 loan forgiveness
- Election allowed to waive farming loss modifications
- Paid sick and family leave credit extended
- Creates a “PPP second draw”
- Temporary allowance for full deduction of business meals
If you have additional questions on this or any other service LCPA provides, please let us, your TRUSTED ADVISOR, know.