Small Business Aid and Tax Extenders Included in Year-End Bill

Small Business Aid and Tax Extenders Included in Year-End Bill

by Alex Helkamp, CPA, CCIFP

December 22, 2020 – This week, votes are being cast on two large measures put together by congressional leaders toward both a $900 billion Covid-19 relief bill and $1.4 trillion omnibus spending bill.

Included are a revival of the Paycheck Protection Program (PPP) and various tax extenders that come in addition to money for direct economic relief, healthcare, testing, and vaccination costs, schools, rental assistance, food and farm aid, surprise medical bills, water projects, the postal service, and child care.

Paycheck Protection Program expenses are now deductible, even if your loan is forgiven.

Stimulus Provisions

  • PPP related updates
    • PPP expenses are deductible, even if loan is forgiven
    • 2nd draw loans of up to $2,000,000 available for businesses that can demonstrate a decline in quarterly gross receipts when compared to 2019, subject to various other restrictions and number of employee thresholds
    • Additional categories of covered expenses which the loan funds can be used for
    • Simplified forgiveness application for borrowers with loans up to $150,000
  • Up to $10 million grants for shuttered venue operators
  • FFCRA paid sick and family leave credit period has been extended from December 31, 2020 to March 31, 2021 if the employer chooses to pay—however, the mandate is not extending beyond December 31 (Why is the FFCRA still relevant? Learn about opportunities and/or credits you may have missed in our recent video blog with Heather Larson, CPP by clicking here.)

Other Tax Provisions

  • 179D deduction made permanent for energy efficient commercial buildings
  • Work opportunity tax credit extended from December 31, 2020 to December 31, 2025
  • 45L energy efficient homes credit extended from December 31, 2020 to December 31, 2021
  • Modifications and extension of the employee retention credit to June 30, 2021
  • 100% deduction for business meals and beverages provided by a restaurant which are paid or incurred between January 1, 2021 and December 31, 2022
Alex Helkamp, CPA, CCIFP

Alex Helkamp, CPA, CCIFP

Alex Helkamp is a partner in the business tax service area at Redpath and Company. As tax leader on the construction, real estate, and engineering industry team, he assists clients with business tax planning, implementation of accounting standards, mergers and acquisitions transactions, and other accounting services. Having earned his CCIFP certification in 2017, Alex maintains a vast knowledge of construction industry issues and tax challenges faced by companies in the industry. Clients appreciate his insights to help them defer taxes, minimize tax liabilities, recognize tax credit opportunities, and free up cash flows. Alex enjoys meeting with his clients as much as possible throughout the year to discuss their goals and objectives, understand their unique needs, and help them find solutions that maintain their business and financial health. He is a frequent speaker on topics related to the construction industry and he has provided public accounting services at Redpath and Company since 2011.