The Senate approved 96-0 the approximately $2 trillion "Phase III" stimulus bill known as the CARES Act. The House is expected to pass the bill by the end of the week after which the President is expected to sign the measure.
The bill's major components include:
- small business loan-to-grants and stabilization for other businesses (subject to certain restrictions), states and cities, and for expanded unemployment insurance. NATSO will provide additional detailed analyses of these provisions;
- direct payments to Americans with middle-income wages and below;
- deferrals of employer payroll tax liabilities coupled with an employee retention tax credit;
- fixing the "retail glitch" drafting error from the 2017 tax reform legislation for qualified improvement property (including for retail outlets that do not sell fuel. Fuel retailers have already been eligible for 100% bonus depreciation).
- rollbacks of the tax reform's bill's limitation on net operating losses (NOLs) and the business interest limitation;
- an Economic Stabilization Fund (ESF) of $500 billion to provide direct loans, loan guarantees, and other investments to eligible businesses who have incurred or are expected to incur losses as a result of the COVID-19 crisis such that the operations of the business are in jeopardy. A portion of the money is set aside for the airline industry and "businesses crucial to national security" (targeting Boeing);
- $140 billion in emergency funding related to Health and Human Services and additional healthcare provisions.
NATSO will provide additional analysis in the coming days.
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