Late Monday evening, Congress approved The Consolidated Appropriations Act, 2021 (the Act) that contained a number of tax provisions, but more importantly, a number of additional COVID-19 relief measures for individuals and businesses.
Highlights of the Act are as follows:
- Additional direct stimulus payments to individuals
- Paycheck Protection Program expenses paid from PPP grants are now tax deductible
- Round 2 of the Paycheck Protection Program has been authorized for businesses that can show revenue declines of 25%
- Enhanced tax credits provided for employee retention and sick and family leave
- Return of 100% deduction for meals
As the details of the bill come out, we will follow up with additional information as more is released. Please contact us for clarifications and additional information.Categories: Tax, Tax Planning, Small Business, COVID-19 Resources