Phase Three Relief Legislation being Completed in Congress

March 22, 2020

Details of phase three of Congress's COVID-19 relief legislation are being made available and will be considered in the Senate over the weekend. Many expect the legislation will continue to be debated and passed next week. It is expected to be one of the most costly such efforts ever, reportedly topping over $1 trillion. As reported, some early details of the legislation include:


  • 2020 Individual Recovery Rebates

  • Waives the 10% early withdrawal penalty for withdrawals up to $100,000 from qualified retirement accounts for corona virus related purposes

  • Delay of employer payroll tax – half due by December 31, 2021, half due by December 31, 2022

  • Temporarily increases the amount of business interest expense businesses are allowed to deduct on returns by increasing the reduction from 30% to 50% of the taxable income for 2019 and 2020

  • Technical corrections in the Tax Cuts and Jobs Act which will result in increased cash flow for some businesses.

  • 208 billion in loans and guaranteed loans to at risk industries - commercial airlines (50 billion), air cargo carriers (8 billion), other eligible businesses (150 billion)

  • Small business loans for any company with less than 500 employees. The cap of that loan is either $10 million or the average of monthly payments.


  • Tennessee Chamber Report on Congressional Actions


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