ACEC's Katharine Mottley provides an analysis on the recently passed Stimulus Bill.
The House has passed the stimulus bill as amended by the Senate, and the President is expected to sign it on Friday. Most of the $1.9 trillion package is focused on individuals (e.g. stimulus checks and unemployment benefits) and COVID-19 response in the form of funds for vaccine distribution, school reopening, and similar priorities. The following provisions may be of interest to ACEC member firms:
More information related to restrictions on the $350 billion in state/local government funding:
There was concern among Senate Democrats that some states would accept the federal funding for the allowed purposes and then turn around and cut taxes. The language was not vetted at all and may not be constitutional, as well as will likely have unintended consequences. We don’t know how broadly Treasury will apply this language but we’re wondering if it could extend to state legislation making expenses covered by PPP loan forgiveness deductible at the state level (this will not affect federal tax deductibility of expenses covered by PPP loan forgiveness).
Vice President, Tax and Regulatory Affairs