More Pandemic Related Legislation

GRANTS FOR SHUTTERED VENUE OPERATORS

Congress authorized the SBA to provide grants of up to 67.5% of 2019 gross revenue to certain venue and entertainment operators who showed at least a 25% drop in revenue in 2020 compared with 2019. Total grants can’t exceed $10 million per qualified venue. Qualified venue operators must have been fully operational at February 29, 2020 and must state they intend to remain in business.

DEFINED BENEFIT PLAN CONTRIBUTIONS

The CARES Act allows for deferral of contributions to single-employer defined benefit pension plans. Any contribution required to be made in 2020 can be made as late as January 4, 2021 and still be considered to be paid on time. This
deferral is intended to help alleviate additional adverse impacts on business owners who were impacted by the COVID-19 pandemic.

Discuss tax credits with your tax professional each year. As your business grows, you may be able to claim additional credits that were not previously allowed. Discuss tax credits with your tax professional each year. As your business grows, you may be able to claim additional credits that were not previously allowed.

INDIAN EMPLOYMENT CREDIT RESURRECTED

The Indian Employment Credit, which expired at the end of 2017, is back in force through December 31, 2021. This credit incentivizes employers to boost employment on Indian reservations. The credit is worth up to 20% of the first $20,000 in qualified employee wages and health insurance costs over the amount of these costs and wages incurred by the employer in 1993.

EMPOWERMENT ZONE TAX INCENTIVES

The Empowerment Zone Tax Incentive program, which was designed to incentivize business investment and job growth in certain economically disadvantaged areas is available through December 31, 2025. The program may entitle you to expanded Section 179 deduction allowances, potential deferral of capital gains under IRC Section 1397B, and the ability to finance projects using certain tax-exempt bonds under IRC Section 1394.