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Vivian Dempsey

As the second wave of the COVID-19 pandemic intensifies many Atlanta businesses continue to be limited by government orders. This has left many unable to stay open or are doing so under drastically different conditions. The result has been a series of ongoing challenges that have left many businesses and individuals eagerly waiting for relief. It is against this backdrop that Congress and the White House passed another round of COVID-19 relief. The Consolidated Appropriations Act, 2021, (the Act) provides economic stimulus payments, expanded unemployment benefits, expanded tax savings for businesses, and changes to the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

In the new year, many Atlanta individuals, families, and businesses will benefit from the recently passed COVID-19 Relief Bill. There is something for everyone including tax incentives for businesses, stimulus payments, expanded individual tax savings, and favorable changes for Paycheck Protection Program (PPP)  borrowers. The comprehensive relief is designed to provide individuals with an economic boost while providing businesses additional resources for dealing with the uncertainty of the pandemic. The Consolidated Appropriations Act, 2021 (the Act) which provides over $900B in assistance also brought back a popular program that had run out of funding in July 2020, Economic Injury Disaster Loan (EIDL) advances.

Cash-strapped businesses looking at different options to stretch every dollar may be overlooking a valuable tax benefit: the Work Opportunity Tax Credit (WOTC). Atlanta businesses that hired eligible workers in 2020 might be able to claim between $1,200 and $9,600 for each new hire – if certain conditions are met.

As the closing weeks of 2020 quickly approach many Atlanta businesses are taking a closer look to uncover new tax-saving opportunities. Given the number of challenges presented by the COVID-19 pandemic, it is not surprising there have been several new and extended federal tax incentives introduced to help businesses survive and recover. While valuable tax-saving opportunities, it is important not to forget about the tax extenders passed by Congress at the end of 2019. The one most relevant to Atlanta construction companies and contractors is the Section 45L, New Energy Efficient Home Tax Credit, which provides a credit for meeting certain energy efficiency minimums.

The challenges faced by businesses during the COVID-19 pandemic have been trying, frustrating, and difficult. From the initially forced business closures and stay at home orders to finding new sources of working capital, it has been a difficult time. Despite all the hardships, a silver lining has been the various tax saving opportunities implemented to help businesses reduce tax liability.

The COVID-19 pandemic caught many businesses by complete surprise when stay at home orders and forced business closures were announced.  Main street businesses and larger companies were required to reduce operations, modify service offerings, or completely close. The aftershock of these changes resulted in some organizations going out of business while others had to drastically cut expenses, including employees, to maintain financial solvency. Six months later it appears the situation is turning around. In fact, it was recently announced that in August there were $642M in new investments across the state including the creation of 4,036 new jobs. As the shift to recovery continues, many Atlanta businesses are looking for ways to bolster working capital to meet expenses and make new strategic investments.

The COVID-19 pandemic has had a significant impact on businesses in Atlanta and across Georgia. From the initial forced business closures to new operating guidelines many have had to be flexible and creative to maintain profitability. These rules have not only impacted how businesses serve customers, but also how a safe workplace is developed and maintained. A central theme that is woven into the regulations is a concern for the health and safety of all those involved. To facilitate this personal protective equipment (PPE) which includes facemasks, face shields, eye protection, and gloves have used. As demand for these items has sharply increased, more businesses are shifting operations to focus on the production of PPE. The good news for companies that have made the transition is that Georgia now offers a PPE Manufacturing Tax Credit.

The attempts by Congress to negotiate another round of Coronavirus relief for individuals, businesses, and local government agencies have failed to move forward. The inability to come to agreement left many relying on expected relief frustrated and concerned about the future.

The good news for DeKalb County businesses is there is a new business loan program, with a loan forgiveness feature, which will soon begin accepting applications. The DeKalb Better Business Loan Program offers qualifying businesses experiencing financial difficulties due to the COVID-19 pandemic access to low-interest loans. Like the PPP, borrowers are required to use loan proceeds to pay certain business expenses including payroll, business interest, rent, utility, and other business-related debts.

If there is one word that best describes 2020 it would have to be instability. The COVID-19 pandemic has created new challenges for individuals, businesses, and organizations. Efforts designed to flatten the curve while important to public health have created dire economic conditions. Businesses were hit sharply when forced business closures and modified operation regulations were implemented leaving many without the ability to generate income.