NEW COVID-19 RELIEF PACKAGE
It appears that both the House of Representatives and U.S. Senate have finally agreed on a new relief package to address a number of issues as a result of the COVID-19 pandemic. After passing both the House of Representatives and U.S. Senate, the bill ended up on the desk of President Trump. On December 27, 2020, President Trump signed the bill into law after previously suggesting he may veto it because of various issues. The law provides for $900 billion in COVID relief funding as well as $1.4 trillion in government spending so as to avoid a government shut down. The new legislation provides for the following:
- Additional $600 payments to individuals making under $75,000 per year, and $1,200 per married couple earning less than $150,000 per year, both based on their 2019 tax returns. President Trump wants the amount to be increased to $2000 per person and $4000 per couple. The House and Senate are supposed to vote on a revised version of the legislation but the outcome is uncertain and could slow the process of mailing the checks to each American which the Treasury Secretary said is ready to go at the $600 per person level;
- For unemployment benefits which were ready to expire for millions of Americans, the benefits will be extended for an additional 11 weeks and be increased by an additional $300 per week;
- There will be $25 billion in rental assistant to families affected by COVID-19 who are not able to pay rent and utilities In addition, the ban on evictions has been extended until January 31, 2021;
- An additional $284 billion in paycheck protection program (PPP) loans to small businesses in order to continue to operate has been approved and will be managed through various community-based financial institutions. In addition, veracious clarifications and expansions of the PPP loans are included in this legislation;
- Payroll tax period extension;
- Programs to assist the farming industry;
- Items in the retirement act known as the CARES Act have been clarified extended, as well;
- Charitable contribution tax deduction items have been extended through 2021;
- Tax credit programs for eligible employers during the COVID-19 closures, including tax credits for paid sick and family leave;
- Various other tax credit items for businesses have been extended such as the work opportunity tax credit, the low-income housing tax credit, and the new markets tax credit, among others.
We will look forward to further details regarding this second round of COVID relief approved by Congress and signed by the President in the coming weeks. Please consult your tax advisor for specifics.
NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice.
James F. Contini II, Esq.
Certified Specialist in Estate Planning,
Trust & Probate Law by the OSBA
Krugliak, Wilkins, Griffiths & Dougherty Co., LPA
405 Chauncey Avenue NW
New Philadelphia, Ohio 44663
Phone: (330) 364-3472
Fax: (330) 602-3187