As you probably know by now, President Trump signed the COVID Relief Bill that we have talked about several times here on our posts, and it’s good news. Something that we didn’t know was in there until it actually passed is they did do the fix for the PPP loan forgiveness. Quick background: as you know the PPP Loan Forgiveness itself was not taxable. However, the Internal Revenue code states that expenses that are paid from tax-free income are not deductible. Well, that’s a backdoor way of taxing tax-free income. That wasn’t the intent of Congress, and so they got that fixed in this bill.
The other big things we’re sure you’ve heard about are $600 per taxpayer credits for those married and filing joint under $150,000 or singles under $75,000 of Adjusted Gross Income. That’s a big deal, but there’s a whole bunch of other stuff. There’s some other smaller tax items, which we focus on here. For instance, there’s an extension of some tax credits for renewable energy for wind and carbon. There’s a tax credit for struggling employers who were able to keep people on payroll, and you’ll be able to use your 2019 income to qualify with that.
There’s also some other lower taxes on things like beer and wine, but there’s a whole bunch of other special credits for small businesses and business institutions. Small businesses may have another opportunity to go back and get some more PPP funding. There’s more money in there for transportation benefits, entertainment venues, banks, airlines, etc. Then there’s money for vaccines and schools. We also have the an extension through the end of January on the evictions moratorium, but people may also apply and get money for rental assistance. Landlords can even apply on behalf of tenants. The other big deal is the extension for up to 50 weeks of $300 a week on unemployment benefits. 50 weeks is a big deal, almost double what most states already supply, and it’s $300 on top of what is already in place.
Great news for most people in the country! Don’t hesitate to contact Harvard Grace if you have any questions about how to do this. If you’ve not already gotten your PPP loan forgiven, then please make sure you make that application and get that done as soon as possible, because it’s going to be deemed forgiven in 2020 anyway, whether the forgiveness comes in 2021 or not. Stay tuned and keep in touch!