MAJOR TAX PROVISIONS
OF THE CARES ACT

Tax credit rebates of up to $1,200 per individual and $500 per child that are phased out for taxpayers with AGI over $75,000 ($150,000 MJF and $112,500 HOH) and will be “rapidly advanced”

Deferral of 50% of an employer’s payroll tax deposits for 2020 (with 50% of deferred amount due by December 31, 2021, and 50% due by December 31, 2022)

A refundable employer retention credit equal to 50% of qualified wages against quarterly employment taxes, to offset up to $10,000 of wages paid per employee in 2020

The reinstatement of NOL carrybacks for the 2018–2020 taxable years, and repeal of the 80% taxable income limitation for the 2018–2020 taxable years

A TCJA technical correction that classifies qualified improvement property as 15-year recovery period, allowing the bonus depreciation deduction to be claimed for such property retroactive as if it was included in the TCJA at the time of enactment

Penalty-free withdrawals of tax retirement funds of up to $100,000 (income recognized over a three-year period)

A temporary waiver of RMD requirements in 2020

Increased individual and corporate charitable contribution deductions for 2020

The deferral of excess business loss limitations until 2021

Deferral of an employer’s 2020 minimum contributions to its single-employer defined benefit pension plan until January 1, 2021

An increase in the business interest deduction limitations from 30% to 50% of adjusted taxable income for the 2019 and 2020 taxable year

An exclusion from income for employer-payments made on employee student loans paid before January 1, 2021

The acceleration of the corporate credit for prior-year minimum tax liability, allowing 100% of the credit to be claimed in 2019 (2018 at the election of the taxpayer)

A COD exclusion of small business Payroll Protection loans forgiven under the Act