COVID Relief Bill Passed by Congress

Lawmakers in the US Congress have approved the $ 900 billion COVID-19 Relief package late Monday night December 21, 2020 and it is expected to be signed into law by President Trump shortly.

The bill addresses needed relief for individuals and businesses affected by the current pandemic by providing unemployment benefits, Payroll Protection Program (PPP) expense deductibility, an additional round of PPP loans for eligible businesses, direct stimulus payments to qualifying individuals and aid for COVID-19 vaccinations and testing.

Key provisions of the law:

• Immediate stimulus checks in the amount of $600 (or $1,200 for joint filers), half the amount provided in the first round of checks. This amount will phase out for those earning more than $75,000 in 2019 ($150,000 for Joint filers) and eliminated for those earning above $87,000 ($174,000 for joint filers). Eligible Taxpayers with children will also receive $600 per qualifying child, this amount is $100 more than what Congress gave families in the spring.
• $300 in additional federal unemployment benefits per week for 11 weeks beginning December 27, 2020.
• $25 billion in emergency assistance to renters and extends the federal moratorium on evictions through January 31, 2021.
• $285 billion for a second round of the Paycheck Protection Program loans for eligible business that have 300 or less employees and also meet a 25 percent reduction in a gross receipts test.
• Reversing an earlier IRS ruling , the law will allow expenses used in PPP loan forgiveness to be tax deductible.
• The new act repeals a prior law that stated that an EIDL Advance Grant reduces PPP loan forgiveness. Under the new law the receipt of an EIDL Advance will have no impact on PPP loan forgiveness.
• $45 billion for transportation aid for airlines, airports, mass transit, and highways.
• $82 billion in assistance to schools and colleges.
• $69 billion for assistance to health care providers and COVID-19 vaccine distributions, purchases, testing and tracing programs.
• Tax provisions include a full deduction for restaurant business meals, for amounts paid or incurred between January 1, 2021 and December 31, 2022. This is an increase from the current 50 percent limitation.
• Additional provisions makes permanent or extends various tax deductions or credits which were set to lapse after December 31 , 2020.

The House and Senate have also passed the $1.4 trillion Omnibus spending package which will fund the government through September 30, 2021.
Good night from the Capitol.