Advocacy News – December 22, 2020
After months of on again off again negotiations, Congress finally passed a COVID-19 relief package to help struggling businesses and families. Two weeks ago, the Michigan Chamber put out a call to action that asked Chamber members from all over the state to contact their US Senator and US Representative and ask that they support a relief package before the end of the year. Through our grassroots efforts and in partnership with the US Chamber, the Michigan Chamber and businesses all across our state can breathe a little easier knowing major relief is on the way.
Of the $900 billion in relief, $325 billion will be intended to help struggling small businesses. A breakdown of small business relief funding is as follows:
- $284 billion for the Paycheck Protection Program (PPP).
- Expands eligibility of the PPP to certain 501c6 organizations and local newspapers and TV and radio broadcasters.
- $20 billion for Economic Injury Disaster Loans (EIDL).
- A change in law that will allow businesses to take tax deductions for the expenses incurred by forgiven loans. A change that could save small businesses $200 billion alone on top of the total relief estimates.
The relief bill also includes significant and specific help to airlines, entertainment venues, and farmers.
In addition to direct spending, several key tax changes were made to further benefit the business community, such as:
- Extend payroll tax credits and relax eligibility requirements.
- Extend renewable energy tax credits.
- Allow business meals to be deductible.
- Extend a tax cut on beer, wine and spirits.
- Extend tax credits for investing in low-income areas.
- Extend tax credits for hiring disadvantaged workers.
For more information on the latest federal stimulus, please contact Dan Papineau at dpapineau@michamber.com