Congress Makes Year-End Push for COVID Relief Package
Legislative Package to be Considered Alongside Federal Funding Deadline, Includes Key Provisions for IAM Members
With only a handful of days left in the 2020 Congressional session, yesterday evening a bipartisan set of lawmakers in the House and Senate introduced two separate pieces of legislation to address broad-based COVID related economic relief, which includes funding for testing, schools, vaccine distribution and an extension of enhanced unemployment benefits.
The larger of the two bills would also re-open the Paycheck Protection Program (PPP), allowing both a first loan and "second draw" for eligible companies (those with under 300 employees). Second draw PPP loan recipients would need to demonstrate a loss in gross receipts of 30% or greater in at least one quarter of 2020 versus one quarter of 2019.
Importantly, the legislation would also permit businesses who have taken PPP loans to deduct that money, similar to ordinarily received income. IAM has been supportive of this change throughout the year. Without legislation to address PPP income, recipients would not be allowed to deduct funds received from the PPP as ordinary income on their tax returns. The PPP has also been opened up to 501(c)(6) and similar non-profit organizations, with under 150 employees.
The smaller of the two is more controversial in nature, as it would provide broad-based corporate liability protections, alongside additional funding for state and local governments. By breaking the COVID relief bill out, Congress will be able to consider them separately, if they run out of time to combine the two into one overall bill for consideration.
If you have any questions or would like to follow up, please contact Bryan Vickers with IAM's Regulatory Affairs team at email@example.com, 703-403-2882. IAM will keep members apprised of developments as they occur.