Lawmakers have agreed to another round of pandemic-related relief, which has been included in the 2021 Consolidated Appropriations Act and is expected to be passed quickly. The nearly 5,600-page bill includes a number of provisions that benefit businesses and individuals, including:
- Allowing the deduction of expenses paid with forgiven PPP debt;
- Providing four additional categories of non-payroll expenses that are allowable and forgivable for PPP purposes;
- Creating a simplified forgiveness process for PPP loans under $150,000;
- Repealing the provision that reduced PPP forgiveness by the amount of any EIDL advances;
- Allowing “second draw” PPP loans for small businesses with significant declines in revenue;
- Extending and expanding the CARES Act Employee Retention Credit and the FFCRA paid leave credits;
- Allowing PPP loan recipients to claim the Employee Retention Credit;
- Allowing deductions for business meals for 2021 and 2022;
- Providing a second round of Economic Impact Payments ($600 per individual);
- Extending an additional $300 per week for individuals receiving unemployment benefits through March 14, 2021 (early April 2021 in some instances); and
- Extending a variety of expiring tax provisions.
To read the full text of the bill, go to:
For a detailed discussion of the tax provisions contained in this act, attend Spidell’s 2020/2021 Federal and California Tax Update webinar. Customers who have already attended the webinar will receive a detailed analysis of the bill along with a video explaining the most important provisions.
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