Generous Tax Perks Blossom in New Relief Loan Funding Round

Expanded tax perks in the new round of Paycheck Protection Program funding are designed to stretch support to small businesses still stuck in widespread shutdowns caused by the pandemic.

The biggest change from the original version of the pandemic aid program is the ability to receive a PPP loan and claim the employee retention tax credit, a CARES Act (Public Law 116-136) perk meant to encourage companies to keep employees on their payroll. In the first iteration, businesses could only choose one or the other.

That flexibility, as well as a forced reversal for the IRS ...