DC Tax Flash: Majority Leader Unveils Economic Rescue Bill, Democratic Support Uncertain
Senate Majority Leader Mitch McConnell (R-KY) today released the text of a revised version of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), reflecting round-the-clock negotiations with Democrats and Administration officials.
On the floor today, Leader McConnell urged the Senate to move the bill forward through the initial parliamentary steps. Although Democrats have not yet signaled support for the bill, Sen. McConnell said it includes significant bipartisan policy proposals. Even still, he indicated that talks would continue with Democrats, meaning more revisions are possible and perhaps likely. A vote to move forward with the bill this afternoon was postponed until 6 p.m. this evening.
In addition to a massive direct transfer of federal money ("recovery rebates") to individual taxpayers, Division A of the bill lists a number of provisions directed at businesses, including the following:
Subtitle C—Business Provisions
- Sec. 2301. Delay of payment of employer payroll taxes.
- Sec. 2302. Modifications for net operating losses.
- Sec. 2303. Modification of limitation on losses for taxpayers other than corporations.
- Sec. 2304. Modification of credit for prior year minimum tax liability of corporations.
- Sec. 2305. Modifications of limitation on business interest.
- Sec. 2306. Technical amendments regarding qualified improvement property.
The text of Division A of the legislation is posted here.
The text of Division B of the legislation, which includes the emergency appropriations, is posted here.
A Senate Appropriations Committee summary of Division B is posted here.
Miller & Chevalier has formed an interdisciplinary task force, comprised of attorneys in seven main practice areas, to help businesses navigate the complex legal issues created by this global event. More information is posted here.
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