Expected to be Signed into Law this Week
New PPP funds and Deductibility of Covered Expenses Provisions

This week the US House and Senate passed a roughly $900 billion COVID-19 relief bill as a part of The Consolidated Appropriations Act, 2021 which effectively funds the federal government through its fiscal year end September 2021. It is expected to be signed into law later this week by the President.

Sampling of key business provision elements of the bill include the following:

• New small business targeted PPP funding even to those who previously
  received a PPP loan – $284 billion
• New EIDL advance grant funding – $20 billion
• New targeted “shuttered” live venue funding – $15 billion
• New targeted low-income and minority community lending – $10 billion
• Tax deductibility for business expenses paid with forgiven PPP loans
• Extension of employee retention tax credit
• Allowance of 100% business deduction for restaurant meals post 12/31/2020 expiring 12/31/2022

Sampling of key individual provision elements of the bill include the following:

• New $600 stimulus payments for individuals making up to $75K per year
• New $600 stimulus payments for each child dependent
• Added $300 extended unemployment benefits

As expected with any bill nearly 5600 pages in length there will be many additional changes impacting both individuals and businesses alike. Be assured that the consulting and tax experts at Polk and Associates will be reviewing these details in the upcoming days to ensure we are up to speed on all of them and how they may impact you. We will keep you posted on further developments. As your trusted business advisors, we at Polk and Associates remain committed to assist you during this extraordinary time. Please reach out to us with questions you may have as we stand with you as we weather this extraordinary crisis.

Polk & Associates

Large enough to serve a diverse clientele, yet small enough to maintain a hands-on approach, we are committed to maintaining the highest accounting and ethical standards with continuous education, extensive research resources, and excellent quality control.

Polk and Associates is a member of the Michigan Association of Certified Public Accountants, and the American Institute of Certified Public Accountants. The firm participates in the AICPA Peer Review Program, and has always received the highest level of award for its audit practice and quality control.