What is in the Stimulus Bill announced by Senate leadership yesterday and how it might help with the consequences of Coronavirus?
The Senate yesterday unanimously passed the Stimulus Bill designed to provide economic relief for those impacted by the Coronavirus and the House of Representatives will vote on it next. If the House approves it in the form submitted by the Senate, then the Stimulus Bill will be fast-tracked to President Trump for signature. So, as of the writing of this summary, this law has not been finalized. Here are key details of the Stimulus Bill in its current form:
- $2 Trillion in federal government spending is the estimated cost of the Stimulus Bill;
- $500 Billion allocated to distressed industries including grants—not subject to repayment perhaps—and loans including up to $350 Billion to small businesses, with further details on eligibility to be announced;
- Net operating loss carryback experienced in 2018, 2019, and 2020 tax years may be carried back up to five years;
- Payroll tax relief for employers;
- Employment retention credit for employers to keep their employees on payroll;
- Corporate recipients of the $500 Billion referenced above may not use funds received to buyback or redeem their own stock, which now may be available at reduced market prices;
- Stimulus payments of $1,200 to individuals with gross income of $75,000 or less with total stimulus payments up to $3,000 per qualifying family (reduced Stimulus payments would be made for those with income above $75,000 but subject to a gradual phase-out to the extent income exceeds $75,000);
- Expanded unemployment insurance for the unemployed;
- Funds allocated for drug development, ventilators, masks, gloves, and gowns; and,
- More federal legislation could follow granting additional relief.
While the Stimulus Bill is not in effect as of the date of this legal alert, KWGD is available to consult with companies and individuals looking for guidance. KWGD will update you on the final form of the Stimulus Bill when it is passed. Meanwhile, if you have any questions, please contact a taxation or corporate attorney at Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A. 330-497-0700. We look forward to helping you at this critical time.
Note: This general summary of proposed legislation should not be relied upon as law or as assurance that any of the above will ultimately become law. Please do not apply this summary to your business or individual plans or needs without particular legal advice that considers your unique situation.
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