Yesterday, Congress passed legislation to fund the government through the balance of the fiscal year and provide long-awaited COVID relief.
Included in this legislation are a number of NRMCA priorities – policies that we have consistently advocated for on behalf of the industry and that are significant policy wins.
- Clarification on tax treatment of Paycheck Protection Program (PPP) loans. The legislation clarifies that 1) a PPP loan is not considered taxable income and 2) traditionally tax deductible expenses paid for with PPP funds will be tax deductible. This was a primary objective of NRMCA’s advocacy and a BIG WIN for the industry.
- Second round of PPP loans. Companies can apply for a second PPP loan if 1) they have fewer than 300 employees; 2) have used or will have used the full amount of their first PPP loan; and 3) can demonstrate a 25% reduction in gross receipts in corresponding quarters between 2019 and 2020. If you believe you are eligible for a second PPP loan, we urge you to contact your lender immediately to communicate your intention and begin your application.
- Eligibility of 501(c)6 non-profits for PPP loans. While the CARES Act made 501(c)3 and 501(c)19 organizations eligible for PPP loans, this bill will allow 501(c)6 non-profit membership organizations to apply for forgivable PPP loans, provided they do not earn more than 15% of their revenue from lobbying and lobbying does not comprise more than 15% of their expenses. If you represent a state association or other 501(c)6 and believe your organization may be eligible, we urge you to contact your lender immediately to discuss your options.
- Funding for state departments of transportation. The package included $10 billion in funding to support state departments of transportation that have experienced revenue shortfalls due to impacts of COVID. Early drafts of the COVID package did not include this funding; this is a BIG WIN for the industry and will directly impact the ready mixed concrete industry.
- Expansion of Employee Retention Tax Credit (ERTC). The bill allows companies that received PPP loans to claim the refundable credit for a portion of underutilized employees’ wages.
- Federal paid leave refundable tax credits. Refundable tax credits to reimburse employers for expenses related to mandatory paid leave established by the Families First Coronavirus Relief Act are extended.
You can read the full text of the government funding and COVID relief legislation here and find a summary here.
In addition to these specific policy wins in the COVID relief package, the package included the reauthorization of the Water Resources Development Act (WRDA) to provide for water infrastructure projects for the next two years. You can read a summary of WRDA here and a fact sheet here.
NRMCA has been a vocal advocate for each of the above policies in the COVID legislation. Over the past months, we have advocated directly on behalf of our members to Members of Congress and key Congressional staff, both independently and in unison with our allied associations and coalition partners. We have issued multiple grassroots alerts and NRMCA members have sent thousands of letters to Congress.
During the past few days, NRMCA was engaged in last-minute communications with Members of Congress and staff, reiterating the importance of these policies and urging bipartisan work on behalf of America’s small businesses and ready mixed concrete industry.
Two of our key priorities – tax deductibility and state DOT relief – are included in this legislation. However, we remain aligned with the business community and our allied associations in calling for Congress to include liability protections as it considers another round of relief early next year.