TAX SEASON 2021

As we have been following closely, “by a vote of 220-211, the House passed the measure and cleared it for President Biden’s signature, cementing one of the largest injections of federal aid since the Great Depression. We expect President Biden to sign the bill Friday. Since it does not have to go back to the Senate, there were no changes.”

Here are a few highlights of what is inside:

Credits/PPP/EIDL

SEC. 9651 – EXTENSION OF EMPLOYEE RETENTION CREDIT.

Extended to December 31, 2021. Modifies the credit such that, beginning after June 30, 2021, the credit will be structured as a refundable payroll tax credit against the hospital insurance tax

SEC. 9672 – TAX TREATMENT OF TARGETED EIDL ADVANCES.

Exempts Economic Injury Disaster Loan (EIDL) grants from tax and provides that such exclusion shall not result in a denial of deduction, reduction of tax attributes, or denial of increase in basis by reason of this exclusion from income.

SEC. 9611 – CHILD TAX CREDIT IMPROVEMENTS FOR 2021

An expansion of the child tax credit to give families up to $3,600 per child over a year

SEC. 6001 PPP

Expands eligibility to the additional non-profits listed in Section 501(c)

SEC. 6001 PPP

Provides that newly eligible entities may take out second draw PPP loans, provided that they have suffered at least a 25 percent revenue loss and employ not more than 300 employees

SEC. 6001 PPP

Provides an additional $7.25 billion for PPP and increases the PPP program level from $806.4 billion to $813.7 billion

SEC. 6002. TARGETED EIDL ADVANCE

Additional $15 billion for funding shortfalls for the 10k grant.

SEC. 6002. TARGETED EIDL ADVANCE

Directs SBA to make any remaining funding available for supplemental grants to “severely impacted” small businesses

EC. 6003. SUPPORT FOR RESTAURANTS

$25 billion for a new program at the SBA offering assistance to restaurants and other food and drinking establishments

SEC. 6005. SHUTTERED VENUE OPERATORS

Additional $1.25 billion for the SBA Shuttered Venue Operators Grant Program

SEC. 9641 – EXTENSION OF CREDITS

Extends the Families First Coronavirus Response Act paid sick time and paid family leave credits from March 31, 2021 through September 30, 2021

Additional Funds

Payments of $1,400 to most individuals, along with the same amount for each dependent. Checks start to phase out at $75,000 in income and go to zero for individuals making $100,000
A $300 per week unemployment supplement through September 6, 2021.