Businesses in Atlanta and across Georgia breathed a collective sigh of relief when it was announced yesterday afternoon President Trump signed the COVID-19 Relief Bill. It had been over 9 months since the last round of economic stimulus had been passed by Congress despite several failed attempts during the summer and fall. Significant differences in the amount of relief, which incentives and benefits to extend, and the introduction of new programs kept sides apart. The Continuing Appropriations Act, 2021 and Other Extensions (the Act) provide relief for businesses through an expanded PPP (known as PPP2), modifications to Economic Injury Disaster Loans (EIDLs), and changes to several COVID-19 business tax provisions. Given the breadth of changes, the focus of this post will be on business tax opportunities. To help clients, prospects, and others, Wilson Lewis has provided a summary of key details below.
Tax Extenders
In addition to the COVID-19 related tax changes outlined above, there were also several existing tax credits, deductions, and incentives that were extended or made permanent. The New Markets Tax Credit, Work Opportunity Tax Credit, special expensing rules for certain film, television, and theater productions, and Empowerment Zone tax incentives were extended through 2025. In addition, the deduction for energy-efficient commercial buildings, railroad track maintenance credit, and the tax favorable treatment of benefits provided to volunteer EMT/firefighters were made permanent.
Contact Us
The changes made in the Consolidated Appropriations Act provide an extension and enhancement of essential tax incentive programs. As the COVID-19 pandemic continues into 2021, it is essential to review your situation and determine where additional savings can be claimed. If you have questions about the information outlined above or need assistance with a tax or accounting issue, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.
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