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December 30, 2020

BREAKING TAX NEWS | President signs COVID and omnibus legislation

On December 27, President Trump signed the Consolidated Appropriations Act, 2021 (the Act), which the House and Senate passed on December 21. The Act includes roughly $900 billion in coronavirus relief, including many tax and health components, as well as a $1.4 trillion omnibus appropriations package to fund the government through September 2021 that also extends expiring tax provisions and health extenders. Many of the coronavirus relief provisions are extensions and modifications of Coronavirus Aid, Relief, and Economic Security Act provisions, like the expansion of the employee retention credit, rather than new starters.

For a summary of the key parts of the Act, see Tax Alert 2020-2913. For more information on the employee retention credit extension, see Tax Alert 2020-2938.

Text of the bill is available here.