Special thanks to our guest contributors Anne Batter, Alexandra Minkovich, Joshua Odintz, Christopher Hanna, Etienne Couret and Derek Gumm.
After months of partisan bickering and Senate inaction, Congress finally passed another round of COVID-19 relief legislation as part of the Consolidated Appropriations Act, 2021, P.L. 116-260, (“CAA”), which was signed into law on December 27, 2020. We provide a summary of the tax-related CAA provisions and key modifications to the Paycheck Protection Program (“PPP”), before discussing President Biden’s tax agenda for 2021. The CAA’s tax provisions focus primarily on providing economic relief to taxpayers by expanding provisions of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and renewing extenders.
Employee Retention Credit Update
Under the CAA, the Employee Retention Credit (“ERC”) was updated to provide enhanced and extended benefits and to expand those employers that would qualify for the credit, beyond what was provided in the CARES Act.
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