DC Tax Flash: Majority Leader Unveils Economic Rescue Bill, Democratic Support Uncertain

Tax Alert
03.22.2020

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.

​The bill text released today by Sen. McConnell comes in two major packages (Division A and Division B), one covering policy responses and the other making emergency appropriations.

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


The information contained in this communication is not intended as legal advice or as an opinion on specific facts. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact. The invitation to contact the firm and its lawyers is not to be construed as a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.

This, and related communications, are protected by copyright laws and treaties. You may make a single copy for personal use. You may make copies for others, but not for commercial purposes. If you give a copy to anyone else, it must be in its original, unmodified form, and must include all attributions of authorship, copyright notices, and republication notices. Except as described above, it is unlawful to copy, republish, redistribute, and/or alter this presentation without prior written consent of the copyright holder.