After months of on-again/off-again negotiations, on Dec. 21, Congress approved a massive legislative package that contains COVID-19 relief for businesses and individuals and appropriations to fund the fiscal year 2021 federal budget. It will become law soon if it is signed by President Trump.
The legislation provides $900 billion to address COVID-19 related issues and includes numerous provisions of interest to NRCA members, including several of our top priorities:
- Ensures expenses paid with forgiven Paycheck Protection Program loan funds are fully tax deductible
- Provides $284 billion for the PPP which includes an extension for first-time borrowers and a second draw capability for employers with at least a 25% reduction in revenues
- Makes nonprofit trade associations such as NRCA eligible for PPP loans
- Extends and modifies the Employee Retention Tax Credit
- Extends tax credits for employers who provide COVID-19-related paid leave benefits
- Extends enhanced unemployment insurance benefits for individuals laid off because of COVID-19 at $300 per week
- Extends the Pandemic Unemployment Assistance Program (for independent contractors) and the Pandemic Emergency Unemployment Compensation Program
A summary of the COVID-19 provisions of potential interest to employers and individuals within the roofing industry can be found here.
The legislation also provides $1.4 trillion to fund the federal government for the remainder of fiscal year 2021, which runs through Sept. 30, 2021. NRCA is extremely pleased Congress provided an additional $52 million for Perkins State Grants for career and technical education, bringing the total budget for these programs to $1.3 billion in fiscal year 2021. NRCA has made the reform and expansion of CTE, which is vital to members’ ability to address workforce development, a major focus of Roofing Day in D.C., the premier annual roofing industry advocacy event, and these efforts are now providing a return on investment for our members.
In addition to funding for federal agencies, the legislation includes numerous other NRCA advocacy priorities:
- Provisions of the Energy Industrial and Competitiveness Act, a bill to expand energy-efficiency technologies in residential, commercial and industrial buildings
- The Construction Consensus Procurement Improvement Act, a bill to prohibit the use of reverse auctions in federal procurement
- Provides permanence in the tax code for the Energy Efficient Commercial Building Tax Deduction, indexed to inflation
- Provides an extension of the Residential Energy Efficiency Tax Credit for one year
- Provides for an extension of the Solar Investment Tax credit for two years
More information about these components of the legislation will be provided soon.
