We have intentionally avoided disseminating information about the relief bill, known as the CARES Act, until it was in its final form. As of Friday March 27th, both the Senate and the House have approved the bill, and President Trump has signed it into law. As such, we can now begin to provide reliable information.
The bill contains provisions that will provide relief to qualifying individuals in the form of recovery rebates ranging from $1,200 for individuals to $2,400 for couples, and with an additional $500 rebate for each qualifying child. In addition, there are relaxed rules for retirement plan withdrawals and loans, expanded unemployment benefits, and an “above the line” charitable contribution deduction of up to $300 in qualified charitable contributions. And, the law provides for a penalty free deferral of quarterly estimated taxes until October 15, 2020 for the first through third quarter estimated tax payments. This is in addition to the relief already announced by Secretary of the Treasury Mnuchin last week, allowing payment of taxes due on April 15, 2020 to be deferred to July 15, 2020 without penalty or interest.
Relief for businesses will take the form of credits against payroll taxes in certain instances, deferral of payroll tax deposits and estimated tax payments without interest, and a temporary restoration of the net operating loss carryback. In addition, there are Act provisions that loosen some of the restrictions on the deduction for business interest.
One of the biggest provisions of the Act, is a broad SBA loan expansion that will allow many businesses to obtain SBA loans to fund operations, including a provision that will allow some of that borrowing to be forgiven if certain requirements are met. There are many details to come as the regulations to implement the Act are fully developed. We expect to release a separate communication devoted solely to the SBA program very soon.
Over the next few days, we will continue to provide detailed information about the law in its final form.
Even during these challenging times, we look forward to continuing to provide you and your business the client service you have come to expect and deserve from Manley Garvin. At this time, our lobby does remain closed to the public, but our associates are continuing to work remotely to serve you. We thank you for your patience and wish you all good health and safety during these unsettled times. Please do not hesitate to contact us if you have any questions or concerns.