COVID-19 Stimulus Resource Center

Over the past year, we have had to make sweeping changes in our business and personal lives as we adjust to the uncertainties brought about by the coronavirus (COVID-19). Every member of the Engineered Tax Services team extends our best wishes for your safety, and that of your employees and your families. To address the economic hardships brought on by the pandemic, Congress has enacted the two largest emergency aid packages in U.S. history to provide much-needed aid to individuals and businesses hurt by the struggling economy. As a national specialty tax services business, ETS closely monitors federal and state legislation and guidance. We organized the COVID-19 Stimulus Resource Center to provide you with timely information that can benefit your business and clients now and in the months ahead. We’ll highlight tax-advantageous measures, such as the Paycheck Protection Program (PPP), cost segregation and the 179D Commercial Buildings Energy-Efficiency Tax Deduction, and tax changes that will benefit R&D tax credits and the treatment of business losses. Click here to download the 2021 stimulus update eBook Please use the links below to quickly navigate to essential information. We encourage you to contact us directly at any time by calling (800) 236-6519.

CARES Act Tax Rule Changes And Strategies

Tracking State Legislative Responses To COVID-19

Every state is making daily tax law changes in response to the COVID-19 virus and changes to the Federal tax law changes through the various stimulus programs. Here are links that provide the best of (up-to-date?) to date changes by each state.

SBA Economic Injury Disaster Loan Assistance

Small business owners in all U.S. states, Washington D.C., and territories, are currently eligible to apply for a long-term, low-interest loan due to Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. If you are applying for disaster assistance for another declaration, then please see the home owner's and renter's form here.

The SBA Loan program termed the “Paycheck Protection Loans” are projected to have the following benefits:

  1. Small businesses can apply for low-interest loans that cover up to two-and-a-half months of payroll expenses, including salaries, sick leave, and other compensation benefits. The maximum loan amount is $10 million. The loans can cover payroll, rent, utilities, or existing debt obligations. Interest rates on these loans can’t exceed 4%. The key point here is that the loans are intended for business owners who agree to keep their payroll steady, meaning workers across the country could continue getting a regular paycheck. A business will have to make a “good faith certification” that the money will go toward retaining workers, maintaining payroll, or paying necessary expenses like rent.
  2. If an employer continues to pay workers through June, the amount of the loans that went toward eligible costs would be forgiven. That means they’d essentially be grants to small businesses. Eligible costs for forgiveness include payroll costs for employees earning up to $100,000 annually, rent or mortgage payments, and utilities. The amount forgiven would be scaled back if an employer lays off workers or reduces their pay.

Main Street Lending Program: Act Now to Apply for Loans

After a lengthy comment period, the Department of Treasury has provided details about the expanded Main Street Lending Program, which seeks to help small and midsize businesses adversely affected by COVID-19. The program, included in COVID-19 federal disaster assistance funding, provides $600 billion in financing to businesses that were otherwise in sound financial condition before the pandemic. Note: Businesses that received support through the SBA Paycheck Protection Program (PPP) are eligible to receive a Main Street loan.

New Federal COVID-19 Stimulus Tax Law Resource Links

  • IR-2020-59, IRS unveils new People First Initiative; COVID-19 effort temporarily adjusts, suspends key compliance program
  • IR-2020-58, Tax Day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount
  • IR-2020-57, Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave Treasury News Release: Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak
  • IR-2020-54, IRS: High-deductible health plans can cover coronavirus costs