Congress Passes COVID Relief Package

On Monday, Congress passed legislation to fund the federal government through September 30, 2021 and to provide long-awaited COVID relief. The $2.3 trillion package included $1.4 trillion in funding for government departments and agencies and $900 billion in COVID relief.Included in this legislation are a number of NRMCA priorities – policies that we have consistently advocated for on behalf of the industry and that are significant policy wins.

• Clarification on tax treatment of Paycheck Protection Program (PPP) loans. The legislation clarifies that 1) a PPP loan is not considered taxable income and 2) tax deductible expenses will continue to be tax deductible when paid for with PPP funds.
• Second round of PPP loans. Companies can apply for a second PPP loan if 1) they have fewer than 300 employees; 2) have used or will have used the full amount of their first PPP loan; and 3) can demonstrate a 25% reduction in gross receipts in corresponding quarters between 2019 and 2020.
• Eligibility of 501(c)6 non-profits for PPP loans. While the CARES Act made 501(c)3 and 501(c)19 organizations eligible for PPP loans, this bill will allow 501(c)6 non-profit membership organizations to apply for forgivable PPP loans, provided they do not earn more than 15% of their revenue on lobbying and lobbying does not comprise more than 15% of their expenses.
• Funding for state departments of transportation. The package included $10 billion in funding for the Federal Highway Administration to support state departments of transportation that have experienced revenue shortfalls due to impacts of COVID.
• Expansion of Employee Retention Tax Credit (ERTC). The bill allows companies that received PPP loans to claim the refundable credit for a portion of underutilized employees’ wages.
• Federal paid leave refundable tax credits. Refundable tax credits to reimburse employers for expenses related to mandatory paid leave established by the Families First Coronavirus Relief Act are extended.

You can read the full text of the government funding and COVID relief legislation here and find a summary here. NRMCA has been a vocal advocate for each of the above policies in the COVID legislation. Over the past months, we have advocated directly on behalf of our members to Members of Congress and key congressional staff, both independently and in unison with our allied associations and coalition partners. We have issued multiple grassroots alerts and NRMCA members have sent thousands of letters to Congress.During the past few days, NRMCA has been engaged in last minute communication with Members of Congress and staff, reiterating the importance of these policies and urging bipartisan work on behalf of America’s small businesses and ready mixed concrete industry.

For more information, contact Andrew Tyrrell at atyrrell@nrmca.org.