Much of the talk in the media around assistance for local business in the CARES Act (The Act) has been focused around the Small Business Association’s (SBA) loan provisions dubbed the Paycheck Protection Program (PPP). This focus is well deserved, as these loans can be a lifesaving tool for small business. However, are you aware that there are many other provisions in The Act that can be of assistance to businesses during these trying times?
Some of the additional provisions of The Act that impact business includes the following:
- Employee Retention Credit – A refundable credit against payroll taxes
- Deferral of Employer Payroll Taxes
- Treatment of Losses – Allows losses to offset 100% of taxable income and for excess losses to be carried back five years
- Corporate AMT Credits – They become refundable credits until 2021
- Limitations on Business Interest Expense – The Act temporarily raises the limit on business interest expenses deductions previously imposed by the Tax Cuts and Jobs Act (TCJA)
- Delayed funding of minimum contributions to qualified retirement plans
- Delayed filings for certain tax returns and retirement plan documentation
In addition, The Act has other provisions for specific industries and business activities. I once heard someone say that the tax code is simply an incentives program for businesses and individuals to engage in certain activities. That certainly appears to be the case with the CARES Act.
So, if you are a business owner and haven’t talked about any of these additional provisions with your CPA®, attorney or wealth advisor, perhaps it might be time to have that conversation. Give us a call at (916) 924-7527 to have a discussion about any business topics above.