Congress has considered a number of proposals that seek to mitigate the economic effects of the Coronavirus disease 2019, or COVID-19, pandemic. One such proposal, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), was signed into law on March 27, 2020.
Tax relief for individuals and businesses in the CARES Act includes
The CARES Act is part of a series of legislative packages addressing the COVID-19 pandemic. Two other bills preceded the CARES Act: the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (P.L. 116-123) and the Families First Coronavirus Response Act (P.L. 116-127). On April 23, 2020, Congress passed its fourth measure to respond to the COVID-19 pandemic, the Paycheck Protection Program and Health Care Enhancement Act (P.L. 116-139).
The first version of the CARES Act (S. 3548) was introduced in the Senate on March 19, 2020. On March 22, 2020, an updated version of the CARES Act was circulated, as a proposed amendment to H.R. 748. A cloture vote on a motion to proceed, which was designed to allow consideration of the CARES Act, was rejected on March 22.1 On March 23, 2020, an alternative to the CARES Act, the Take Responsibility for Workers and Families Act (H.R. 6379), was introduced in the House.2 A third version of the CARES Act was released on March 25, 2020.3 On March 25, the Senate voted 96-0 to pass H.R. 748, having previously amended it with the CARES Act. The House passed this version of the CARES Act on March 27, 2020, and President Trump signed the CARES Act into law.
This report briefly summarizes the major individual and business tax provisions of the CARES Act, as enacted (Table 1). Links to CRS resources that offer additional information are provided. The Joint Committee on Taxation (JCT) estimated that the individual and business tax provisions in the CARES Act would reduce federal tax revenue by $543.4 billion over the 10-year FY2020 through FY2030 budget window (Table 2).4 The JCT also prepared a technical explanation of the provisions.5
The report also summarizes tax provisions in earlier versions of the CARES Act—the first version of the CARES Act (S. 3548) (Table A-1) as well as the version released March 22, 2020 (Table A-2).6
Table 1. Individual and Business Tax Provisions in the CARES Act (P.L. 116-136)
|
Provision |
Description |
CRS Resources |
|
Title II, Subtitle B—Rebates and Other Individual Provisions |
||
|
2020 recovery rebates for individuals |
Allows a credit against 2020 income taxes, but advanced, generally based on information from 2019 income tax returns. Credit equals $1,200 ($2,400 for married joint filers). Taxpayers eligible for the credit can also receive $500 for each child eligible for the child tax credit. The total credit phases out at a rate of 5% of adjusted gross income (AGI) above $75,000 ($112,500 for head of household filers, $150,000 for married joint returns). Generally, all individuals must have Social Security numbers. (Among members of the Armed Forces, only one spouse must have an SSN.) Receiving a recovery rebate in 2020 does not affect a taxpayer's 2020 income tax liability or tax refund. Taxpayers must have filed a 2019 return (or filed a 2018 return if they did not file a 2019 return) in order to get a rebate in 2020. For Social Security and Railroad Retirement recipients, if neither a 2019 nor a 2018 income tax return were filed, the law allows the IRS to use information from their 2019 Social Security or Railroad Retirement Benefit Statement (SSA-1099 or RRB-1099, respectively) to advance the payment automatically. Otherwise, the rebate can be claimed on a 2020 income tax return. |
For more, see
|
|
Special rules for use of retirement funds |
For retirement plan distributions, the provision provides an exception to the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-affected individuals. Income from such distributions can be recognized over three years, and taxpayers can recontribute funds to an eligible retirement plan in the first year or within three years without regard to the year's contribution cap. For coronavirus-affected individuals, loan limits from retirement plans are increased from $50,000 to $100,000 and the repayment deadline is delayed for loans that are due in 2020. |
For more, see
|
|
Temporary waiver of required minimum distribution rules for certain retirement plans and accounts |
In general, required minimum distribution (RMD) rules required that taxpayers of a certain age withdraw minimum amounts annually. RMD rules typically apply to taxpayers after reaching age 72 (70½ before 2020). This provision waives minimum distribution requirements for 2020. |
For background on required minimum distributions, see
|
|
Allowance of partial above-the-line deduction for charitable contributions |
An above-the-line deduction for cash contributions of up to $300 is available for taxpayers not itemizing deductions in 2020. |
For more on the tax treatment of charitable contributions, see
|
|
Modification of limitations on charitable contributions during 2020 |
Income limits apply to both individual and charitable contribution deductions. This provision suspends the 50% of AGI limit (temporarily 60% for cash contributions through 2025) on cash contributions for individuals for 2020. The corporate deduction limit is increased from 10% of taxable income to 25% for cash contributions. The limit on the deduction of food inventory is increased from 15% to 25%. The increased limits do not apply to contributions to private foundations and donor-advised funds. |
For more on disaster-related changes in charitable giving limits, see
For more on the tax treatment of charitable contributions, see
|
|
Exclusion for certain employer payments of student loans |
Temporarily expands the definition of employer-sponsored educational assistance to include qualified student loan payments made to employees in 2020. Generally, employers can provide their employees with up to $5,250 per employee per year in educational assistance—generally for tuition, fees, and related supplies—that is excluded from wages (and hence not subject to income or payroll taxes). Under this provision, qualified student loan payments are subject to the overall cap of $5,250 per employee per year. Payments made by the employer can go to the employee directly or to the lender. Payments can cover both the principal and interest of the qualified student loan. Qualified student loans are those eligible for the student loan interest deduction (IRC Section 221(d)(1)) that are incurred by the employer for the employee's education. This provision applies to any student loan payment made by an employer on an employee's behalf after the date of enactment and before January 1, 2021. |
For background on the tax treatment of employer-sponsored educational assistance, see
|
|
Title II, Subtitle C—Business Provisions |
||
|
Employee retention credit for employers subject to closure due to COVID-19 |
Creates a refundable payroll tax credit computed as 50% of wages paid by eligible employers. Up to $10,000 in qualified wages can be taken into account per employee in determining the credit amount. Health plan expenses can be treated as wages when computing the credit. Eligible employers are those who (1) were required to fully or partially suspend operations due to a COVID-19-related order (includes nonprofit employers); or (2) have gross receipts 50% less than gross receipts in the same quarter in the prior calendar year. Qualified wages depend on the number of employees the employer had during 2019. If the employer had more than 100 full-time employees, qualifying wages are wages paid when employee services are not provided (with qualifying wages limited to the amount the employee would have been paid for working an equivalent duration during the 30 days preceding the nonservice period). If the employer had 100 or fewer full-time employees, all employee wages paid by eligible employers are credit-eligible. This credit does not apply to government employers. The Social Security trust funds are not affected. |
For more, see
|
|
Delay of payment of employer payroll taxes |
Employers and self-employed individuals can defer, or postpone, the employer share of the Social Security payroll tax through the end of 2020. Deferred tax liability can be paid in two installments: one due by December 31, 2021, and the second by December 31, 2022. The Social Security trust funds are not affected. |
For more, see
|
|
Modifications for net operating losses |
The provision allows carrybacks for up to five years for net operating losses (NOLs) recorded in tax years 2018, 2019, and 2020. NOL carryback capabilities were repealed by the 2017 tax revision (P.L. 115-97), and were previously allowed for up to two years. This provision also temporarily lifts the income limitation applicable to the corporate income tax treatment of NOLs under current law. |
For more, see
|
|
Modification of limitation on losses for taxpayers other than corporations |
This provision suspends the limit on deductions for excess business losses for 2018-2020. An excess business loss is the amount that a taxpayer's aggregate deductions attributable to trades and businesses exceeds the sum of (1) aggregate gross income or gain attributable to such activities; and (2) $250,000 ($500,000 if married filing jointly), adjusted for inflation. For partnerships and S corporations, this provision is applied at the partner or shareholder level. This provision expires after 2025. |
For more, see
|
|
Modification of credit for prior year minimum tax liability of corporations |
The corporate alternative minimum tax (AMT) was repealed by the 2017 tax revision (P.L. 115-97). Corporations having AMT credits (for prior year AMT payments) were allowed to claim the credits against regular tax liability for tax years through 2021. This provision makes these credits refundable in tax years 2018 and 2019. |
For more on the corporate AMT before its repeal, see
|
|
Modification of limitation on business interest |
The 2017 tax revision (P.L. 115-97) reduced the limit on the deduction for net interest from 50% to 30% of adjusted taxable income (income before taxes, interest deductions, and depreciation, amortization or depletion deductions). P.L. 115-97 also eliminated the rule that restricted net interest deduction limits to firms with a debt-to-equity ratio above 1.5. These revisions were adopted, in part, to reduce profit-shifting by multinational corporations (by borrowing in the United States). This provision increases the limit to 50% for 2019 and 2020. |
For more, see
|
|
Technical amendments regarding qualified improvement property |
The 2017 tax revision (P.L. 115-97) increased the period for deducting the cost of qualified improvement property (leasehold, restaurant, and retail property improvements) from 15 years to 39 years. This change was apparently a technical error that also prevented these investments from being expensed immediately (sometimes referred to as bonus depreciation). This provision allows these investments to be expensed. |
For more, see
|
|
Temporary exception from excise tax for alcohol used to produce hand sanitizer |
Undenatured ethanol is subject to the excise tax on distilled spirits that normally applies to alcoholic products for consumption. The current tax rate on distilled spirits is $13.50 per proof gallon. A proof gallon is 50% alcohol. The change exempts distilled spirits used to make hand sanitizer for 2020. |
|
Source: CRS analysis of the CARES Act (P.L. 116-136).
The Joint Committee on Taxation (JCT) estimated that the lost revenue from Subtitles B and C of Title II of the Coronavirus Aid, Relief, and Economic Security (CARES) Act will be $543.4 billion for FY2020 through FY2030 (see Table 2). The largest provision, in terms of federal revenue loss, is the individual 2020 recovery rebates. It is estimated that this provision will reduce federal revenue by $292.4 billion, with most of the revenue loss occurring in FY2020. For businesses, the largest provision in FY2020 and FY2021 is the one that allows employers to delay payroll tax payments. This will reduce federal revenues by $211.1 billion and $140.7 billion in FY2020 and FY2021, respectively. However, since this is a delay in payment, much of this lost revenue is recovered when delayed tax payments are made in FY2022 and FY2023. For businesses, the largest provision in terms of revenue loss over the FY2020 through FY2030 budget window, at $135.0 billion, is that which eliminates the dollar limits on loss offsets against ordinary income for noncorporate taxpayers.
Table 2. Revenue Losses from the CARES Act Individual and Business Tax Provisions, FY2020-FY2030
(in millions of dollars)
Source: Joint Committee on Taxation, JCX-11R-20, April 23, 2020, at https://www.jct.gov/publications.html?func=startdown&id=5255.
Notes: -i- represents loss of less than $500,000. A positive value indicates a revenue loss, or decrease in federal revenue. A negative value indicates an increase in federal revenue.
This Appendix contains information on the earlier versions of the CARES Act, the versions that preceded what became law. The first version of the CARES Act (S. 3548) was introduced in the Senate on March 19, 2020 (Table A-1.) On March 22, 2020, an updated version of the CARES Act was circulated, as a proposed amendment to H.R. 748 (Table A-2).
Table A-1. Provisions in Division B of the CARES Act (S. 3548),
as Introduced on March 19, 2020
|
Provision |
Description |
CRS Resources |
|
Title I—Rebates and Other Individual Provisions |
||
|
2020 recovery rebates for individuals |
Credit against 2020 income taxes, but advanced, generally based on 2018 income tax returns. Credit equals the greater of (1) taxpayer's net income tax liability up to $1,200 ($2,400 for married joint filers). Net income tax liability is income tax liability before the child tax credit and refundable tax credits (like the EITC); or (2) $600 ($1,200 for married joint filers) if the taxpayer has qualifying income. To have qualifying income, taxpayer must have either (a) at least $2,500 in total of earned income, Social Security income, or veterans' benefits, or (b) gross income above the taxpayer's standard deduction and $1 of net income tax liability. Taxpayers eligible for the credit can also receive $500 for each child eligible for the child credit. The total credit phases out at a rate of 5% of adjusted gross income (AGI) above $75,000 ($150,000 for married joint returns). All individuals must have Social Security numbers. Taxpayers must have filed a 2018 return (or file a 2019 return if they did not file a 2018 return) in order to get a rebate in 2020. Otherwise, it can be claimed on a 2020 income tax return. |
For more, see
|
|
Delay of certain deadlines |
Tax filing deadline extended from April 15, 2020, to July 15, 2020, to align with the extended payment deadline. Allows individuals required to make estimated tax payments to postpone such payments until October 15, 2020. |
For more on IRS administrative relief for tax filing deadlines following disasters, see
|
|
Special rules for use of retirement funds |
For retirement plan distributions, the provision would provide an exception to the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-affected individuals. Income from such distributions would be recognized over three years, and taxpayers can recontribute funds to an eligible retirement plan in the first year or within three years without regard to the year's contribution cap. For coronavirus-affected individuals, loan limits from retirement plans would be increased from $50,000 to $100,000 and the repayment deadline is delayed for loans that are due in 2020. |
For more on disaster-related special retirement fund access, see
|
|
Allowance of partial above-the-line deduction for charitable contributions |
An above-the-line deduction for cash contributions of up to $300 would be made available for taxpayers not itemizing deductions. |
For more on the tax treatment of charitable contributions, see
|
|
Modification of limitations on charitable contributions during 2020 |
Income limits apply to both individual and charitable contribution deductions. This provision would suspend the 50% of AGI limit (temporarily 60% for cash contributions through 2025) on cash contributions for individuals for 2020. The corporate deduction limit would be increased from 10% of taxable income to 25% for cash contributions. The limit on the deduction of food inventory would be increased from 15% to 25%. The increased limits do not apply to contributions to private foundations and donor-advised funds. |
For more on disaster-related changes in charitable giving limits, see
For more on the tax treatment of charitable contributions, see
|
|
Title II—Business Provisions |
||
|
Delay of estimated tax payments for corporations |
Corporations would be allowed to postpone estimated tax payments to October 15, 2020. |
|
|
Delay of payment of employer payroll taxes |
Employers and self-employed individuals would be able to defer, or postpone, the employer share of the Social Security payroll tax through the end of 2020. Deferred tax liability would be paid in two installments: one due by December 31, 2021, and the second by December 31, 2022. The Social Security trust funds would not be affected. |
For more, see
|
|
Modifications for net operating losses |
The provision would allow carrybacks for up to five years for net operating losses (NOLs) recorded in tax years 2018, 2019, and 2020. NOL carryback capabilities were repealed by the 2017 tax revision (P.L. 115-97), and were previously allowed for up to two years. This provision would also temporarily lift the income limitation applicable to the corporate income tax treatment of NOLs under current law. |
For more, see
|
|
Modification of limitation on losses for taxpayers other than corporations |
This provision suspends the limit on deductions for excess business losses for 2018-2020. An excess business loss is the amount that a taxpayer's aggregate deductions attributable to trades and businesses exceeds the sum of (1) aggregate gross income or gain attributable to such activities; and (2) $250,000 ($500,000 if married filing jointly), adjusted for inflation. For partnerships and S corporations, this provision is applied at the partner or shareholder level. This provision expires after 2025. |
For more, see
|
|
Modification of credit for prior year minimum tax liability of corporations |
The corporate alternative minimum tax (AMT) was repealed by the 2017 tax revision (P.L. 115-97). Corporations having AMT credits (for prior year AMT payments) were allowed to claim the credits against regular tax liability for tax years through 2021. This provision makes these credits refundable. |
For more on the corporate AMT before its repeal, see
|
|
Modification of limitation on business interest |
The 2017 tax revision (P.L. 115-97) reduced the limit on the deduction for net interest from 50% to 30% of adjusted taxable income (income before taxes, interest deductions, and depreciation, amortization or depletion deductions). P.L. 115-97 also eliminated the rule that restricted net interest deduction limits to firms with a debt-to-equity ratio above 1.5. These revisions were adopted, in part, to reduce profit-shifting by multinational corporations (by borrowing in the United States). This provision would increase the limit to 50% for 2019 and 2020. |
For more, see
|
|
Technical amendments regarding qualified improvement property |
The 2017 tax revision (P.L. 115-97) increased the period for deducting the cost of qualified improvement property (leasehold, restaurant, and retail property improvements) from 15 years to 39 years. This change was apparently a technical error that also prevented these investments from being expensed immediately (sometimes referred to as bonus depreciation). This provision would allow these investments to be expensed. |
For more, see
|
|
Installments not to prevent credit or refund of overpayments or increase estimated taxes |
As part of the transition to a new international tax regime under the 2017 tax revision (P.L. 115-97), firms were required to pay taxes on their prior untaxed foreign earnings (the repatriation tax). Firms could elect to pay these taxes in eight annual installments. Due to what was apparently a technical error, firms that overpaid their regular taxes in 2017 could not receive a refund if they owed taxes on repatriations. This provision allows firms to receive refunds for 2017. |
For more, see
|
|
Restoration of limitation on downward attribution of stock ownership in applying constructive ownership rules |
The 2017 tax revision (P.L. 115-97) treats stock owned by a foreign person as attributable to a U.S. entity owned by the foreign person ("downward attribution"). As a result, stock owned by a foreign person may generally be attributed to (1) a U.S. corporation, 10% of the value of the stock of which is owned, directly or indirectly, by the foreign person; (2) a U.S. partnership in which the foreign person is a partner; and (3) certain U.S. trusts if the foreign person is a beneficiary or, in certain circumstances, a grantor or a substantial owner. Downward attribution rules can result in additional tax to the U.S. entity under rules taxing certain income of controlled foreign corporations. This provision limits the application of the downward application rules to a U.S. corporation owning, directly or indirectly, 50% of the value of stock. |
For more, see
|
Source: CRS analysis of the CARES Act (S. 3548, as Introduced).
a. In guidance released on March 18, 2020, the U.S. Department of the Treasury announced that the tax payment deadline had been extended from April 15, 2020, to July 15, 2020. This guidance did not extend the April 15, 2020, filing deadline. See U.S. Department of the Treasury, "Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak," press release, March 18, 2020, at https://home.treasury.gov/news/press-releases/sm948. Subsequently, Treasury announced via tweet that the tax filing deadline would also be moved to July 15, 2020.
|
Provision |
Description |
CRS Resources |
|
Title II, Subtitle B—Rebates and Other Individual Provisions |
||
|
2020 recovery rebates for individuals |
Would allow a credit against 2020 income taxes, but advanced, generally based on information from 2019 income tax returns. Credit would equal $1,200 ($2,400 for married joint filers). Taxpayers eligible for the credit could also receive $500 for each child eligible for the child tax credit. The total credit to phase out at a rate of 5% of adjusted gross income (AGI) above $75,000 ($112,500 for head of household filers, $150,000 for married joint returns). Generally, all individuals must have Social Security numbers. (Among members of the Armed Forces, only one spouse must have an SSN.) Taxpayers must have filed a 2019 return (or filed a 2018 return if they did not file a 2019 return) in order to get a rebate in 2020. For Social Security and Railroad Retirement recipients, if neither a 2019 nor a 2018 income tax return were filed, the law allows the IRS to use information from their 2019 Social Security or Railroad Retirement Benefit Statement (SSA-1099 or RRB-1099, respectively). Otherwise, the rebate could be claimed on a 2020 income tax return. |
For more, see
|
|
Special rules for use of retirement funds |
For retirement plan distributions, the provision would provide an exception to the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-affected individuals. Income from such distributions would be recognized over three years, and taxpayers can recontribute funds to an eligible retirement plan in the first year or within three years without regard to the year's contribution cap. For coronavirus-affected individuals, loan limits from retirement plans would be increased from $50,000 to $100,000 and the repayment deadline is delayed for loans that are due in 2020. |
For more, see
|
|
Temporary waiver of required minimum distribution rules for certain retirement plans and accounts |
In general, required minimum distribution (RMD) rules require that taxpayers of a certain age withdraw minimum amounts annually. RMD rules typically apply to taxpayers after reaching age 72 (70½ before 2020). This provision would waive minimum distribution requirements for 2020. |
For background on required minimum distributions, see
|
|
Allowance of partial above-the-line deduction for charitable contributions |
An above-the-line deduction for cash contributions of up to $300 would be made available for taxpayers not itemizing deductions in 2020. |
For more on the tax treatment of charitable contributions, see
|
|
Modification of limitations on charitable contributions during 2020 |
Income limits apply to both individual and charitable contribution deductions. This provision would suspend the 50% of AGI limit (temporarily 60% for cash contributions through 2025) on cash contributions for individuals for 2020. The corporate deduction limit would be increased from 10% of taxable income to 25% for cash contributions. The limit on the deduction of food inventory would be increased from 15% to 25%. The increased limits do not apply to contributions to private foundations and donor-advised funds. |
For more on disaster-related changes in charitable giving limits, see
For more on the tax treatment of charitable contributions, see
|
|
Title II, Subtitle C—Business Provisions |
||
|
Delay of payment of employer payroll taxes |
Employers and self-employed individuals would be able to defer, or postpone, the employer share of the Social Security payroll tax through the end of 2020. Deferred tax liability would be paid in two installments: one due by December 31, 2021, and the second by December 31, 2022. The Social Security trust funds would not be affected. |
For more, see
|
|
Modifications for net operating losses |
The provision would allow carrybacks for up to five years for net operating losses (NOLs) recorded in tax years 2018, 2019, and 2020. NOL carryback capabilities were repealed by the 2017 tax revision (P.L. 115-97), and were previously allowed for up to two years. This provision would also temporarily lift the income limitation applicable to the corporate income tax treatment of NOLs under current law. |
For more, see
|
|
Modification of limitation on losses for taxpayers other than corporations |
This provision suspends the limit on deductions for excess business losses for 2018-2020. An excess business loss is the amount that a taxpayer's aggregate deductions attributable to trades and businesses exceeds the sum of (1) aggregate gross income or gain attributable to such activities; and (2) $250,000 ($500,000 if married filing jointly), adjusted for inflation. For partnerships and S corporations, this provision is applied at the partner or shareholder level. This provision expires after 2025. |
For more, see
|
|
Modification of credit for prior year minimum tax liability of corporations |
The corporate alternative minimum tax (AMT) was repealed by the 2017 tax revision (P.L. 115-97). Corporations having AMT credits (for prior year AMT payments) were allowed to claim the credits against regular tax liability for tax years through 2021. This provision makes these credits refundable. |
For more on the corporate AMT before its repeal, see
|
|
Modification of limitation on business interest |
The 2017 tax revision (P.L. 115-97) reduced the limit on the deduction for net interest from 50% to 30% of adjusted taxable income (income before taxes, interest deductions, and depreciation, amortization or depletion deductions). P.L. 115-97 also eliminated the rule that restricted net interest deduction limits to firms with a debt-to-equity ratio above 1.5. These revisions were adopted, in part, to reduce profit-shifting by multinational corporations (by borrowing in the United States). This provision would increase the limit to 50% for 2019 and 2020. |
For more, see
|
|
Technical amendments regarding qualified improvement property |
The 2017 tax revision (P.L. 115-97) increased the period for deducting the cost of qualified improvement property (leasehold, restaurant, and retail property improvements) from 15 years to 39 years. This change was apparently a technical error that also prevented these investments from being expensed immediately (sometimes referred to as bonus depreciation). This provision would allow these investments to be expensed. |
For more, see
|
Source: CRS analysis of the CARES Act, March 22, 2020, version. Cloture on the motion to proceed was rejected in the Senate.
Author Contact Information
Acknowledgments
Joseph S. Hughes, Research Assistant in the Government & Finance Division, assisted with updating this product.
| 1. | |
| 2. |
For more information on the tax provisions in this proposal, see CRS Report R46283, The Take Responsibility for Workers and Families Act: Division T—Revenue Provisions, coordinated by Molly F. Sherlock. |
| 3. | |
| 4. |
Joint Committee on Taxation, "Estimated Revenue Effects of the Revenue Provisions Contained in an Amendment in the Nature of a Substitute to H.R. 748, the 'Coronavirus Aid, Relief, and Economic Security ('CARES') Act,' as Passed by the Senate on March 25, 2020, and Scheduled for Consideration by the House of Representatives on March 27, 2020," JCX-11R-20, April 23, 2020, at https://www.jct.gov/publications.html?func=startdown&id=5255. |
| 5. |
Joint Committee on Taxation, "Description Of The Tax Provisions Of P.L. 116-136, The Coronavirus Aid, Relief, And Economic Security ("CARES") Act," JCX-12R-20, April 23, 2020, at https://www.jct.gov/publications.html?func=startdown&id=5256. |
| 6. |
Other tax-related provisions included in other divisions of the CARES Act, and not discussed in this report, include changes that would temporarily suspend excise taxes related to aviation; provide a temporary tax exemption for certain telehealth services; temporarily include certain over-the-counter medical costs as qualified medical expenses for tax purposes; extend the sequestration on direct spending by one year, to 2030; and temporarily provide advance refunding of payroll tax credits for sick leave and paid family leave. For more on the sick and family leave payroll tax credits, see CRS Insight IN11243, Tax Credit for Paid Sick and Family Leave in the Families First Coronavirus Response Act (H.R. 6201) (Updated), by Molly F. Sherlock. |