Tax deductions

Tennessee businesses find relief in COVID-19 tax deductions

As Tennessee is preparing to send an additional $ 45 million in federal coronavirus aid to small businesses before the end of the year. ) program.

Governor Bill Lee enacted a bill that creates a tax deduction for one of the many pandemic relief funds sent between March 1, 2020 and December 31, 2021.

“It allows businesses to deduct from excise tax any CARES Act funds that were given to the business in response to the Tennessee state COVID-19 pandemic,” said Rep. Ron Gant, R-Rossville, sponsor of Bill in the Lodge.

Bill 776 passed unanimously by both houses of the Tennessee Legislature earlier this year. The deduction went into effect on April 14.

In addition to the SERG program, eligible relief programs include the Tennessee Business Relief Program, Tennessee Coronavirus Agricultural and Forestry Business Fund, Tennessee Coronavirus Relief Fund Hospital Staffing Assistance Program, Tennessee Coronavirus Relief Fund Emergency Medical Services Ambulance Assistance Program, Tennessee Small and Rural Hospital Readiness Grants Program and Department of Social Services Child Care Agency Income Loss and Response and Recovery Operations Grants funded by the Federal Child Care and Development Block Grant.

At a recent meeting of Tennessee’s Financial Stimulus and Accountability Group, it was announced that an additional $ 44.6 million will go to the state’s SERG program, which has helped small businesses cover losses from coronaviruses. .

SERG previously sent $ 73 million in payments to 3,243 small businesses that applied for grants, with funding capped at $ 30,000 per business.

If the state changed that cap to $ 100,000, it could approve more funds for the 1,125 SERG-awarded companies that reported losses above the previous cap.

The state is required to spend the remainder of its CARES Act funds by December 31.

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