Throughout the COVID-19 pandemic and into our current recovery, legislation has been enacted to address aid for the recovery of businesses and families. Ongoing discussions about additional federal tax reform measures, beyond COVID-19 relief, indicate that significant changes may be forthcoming.
The Smith and Howard COVID-19 Resources section provides the latest information on pertinent and emerging legislation. We continue to provide up-to-the-minute perspective on how the changes affect you or your business.
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A look at the timeline of recent major legislation follows:
CARES Act of 2020
Perhaps no other legislative relief during the pandemic created as much confusion and complexity as did the Paycheck Protection Program (PPP) and SBA Disaster Loan Programs that were created under the CARES Act. A lifeline for many businesses and nonprofits, applying for and receiving the loans available through both programs proved difficult. Due to the inherent complexity related to the public disclosure of the loans, noncompliance can lead to damage of a company’s reputation, result in penalties and require repayment. Smith and Howard’s tax reform leaders continue to provide guidance to clients and the community through numerous articles, emails, webinars and direct conversations to assist with gathering data, applying for proceeds and ultimately applying for forgiveness. We stand ready to assist as the SBA and Treasury continue their audit processes. The latest on the PPP can be found here and here.
The Consolidated Appropriations Act of 2021
The Consolidated Appropriations Act expanded and extended the Employee Retention Tax Credits (ERTC) (read here) that were created with the CARES Act. The Act also opened a second round of eligible PPP funds. Smith and Howard’s PPP/ERTC leaders have presented webinars on these topics to our clients and industry groups since the initial 2020 legislation was enacted.
The American Rescue Plan Act of 2021
Included in the ARPA were refundable tax credits for paid sick and family leave to help small and mid-size businesses, additional recovery rebates for certain individuals, the expansion of the child and dependent care tax credit, and the extension of the ERTC to the end of 2021. Our analysis of that can be found here.
The American Families Plan
In May 2021, President Biden released his proposed outline of The American Families Plan, a $1.8 trillion proposal to help boost the American economy. Click here for a synopsis. Stay tuned for more information as various proposals and counterproposals are released. Smith and Howard will keep you informed on items that could affect your tax situation.