Highlights of the Coronavirus Response and Relief Supplemental Appropriations Act

President Trump has signed the stimulus bill passed by Congress on Dec. 27, 2020.  It includes $1.4 trillion to extend expiring tax measures and $1 trillion for new tax benefits. Some of the more important provisions are the following:

• Permits a tax deduction for expenses paid for by a forgiven Paycheck Protection Program loan (reversing the previous position taken earlier this year by the IRS stating that these expenses were not deductible)
• Extends the employee retention credit for the first two quarters of 2021
• Retroactively permits the employee retention credit for businesses receiving PPP loans
• Permits businesses to deduct 100% of restaurant meals in 2021 and 2022
• Extends and expands the sick pay and paid family leave credits through 2021
• Permits taxpayers who do not itemize to claim up to $600 in charitable contributions on their 2021 returns
• Continues through 2021 the provision that permits corporations to deduct 25% of taxable income for charitable and food inventory contributions
• Provides $600 checks for each taxpayer and their qualified children subject to income limitations