ABL Dispatch — The Latest Industry News from Washington BY JOHN BODNOVICH, ABL EXECUTIVE DIRECTOR
COVID-19 American Beverage Licensees (ABL) continues to monitor the rapidly changing situation related to the spread of COVID-19. Concern for the health and safety of our members, and the entire hospitality industry, is paramount, as is the impact on ABL members. The last half-dozen weeks have been very trying for bars, taverns and restaurants thanks to forced closures. ABL is actively lobbying the federal government for relief for those beverage licensees that have been forced to shut their doors to prevent the spread of the virus. The association is also working with state affiliates like the TLW to make sure that our members are getting the help they need. Please feel free to let us know how we can assist during this challenging time for our industry.
In addition to the Paycheck Protection Program (discussed below), the most important things in the law for beverage licensees to know about are: • Qualified improvement property. As part of a correction of an error in the Tax Cuts and Jobs Act, businesses are able to immediately write off costs associated with improving facilities instead of having to depreciate those improvements over the 39-year life of the building. • Payroll tax deferral. Employers can defer payment on their share of Social Security taxes through 2020. Half of the deferred taxes must be paid by Dec. 31, 2021, and the other half by Dec. 31, 2022. • The employee retention tax credit. Employers are allowed a refundable credit against applicable employment taxes equal to 50 percent of qualifying wages up to $10,000, for a maximum credit of $5,000. Eligible employers include those forced to entirely or partially suspend operations because of COVID-19, or those experiencing a significant decline in gross receipts because of COVID-19.
Under normal circumstances, I would devote this column to wishing you a happy Tavern Month in May and share why taverns are such an important part of our communities. And while it’s more important now than ever before to support local taverns and all the people they employ, I recognize that most people are not in the mood to celebrate.
• Modifications for net operating losses. The provision provides that a loss from 2018, 2019 or 2020 can be carried back five years.
Instead, I hope the following COVID-19 updates and information may be helpful to TLW members:
• Additional tax relief. The tax filing deadline is extended from April 15 to July 15.
• The Coronavirus Aid, Relief and Economic Security (CARES) Act (bit.ly/op-amendment), a $2 trillion disaster relief package intended to offset the economic fallout of the COVID-19 crisis, became law on March 27.
PAYCHECK PROTECTION PROGRAM
• The Small Business Owner’s Guide to the CARES Act (bit.ly/op-cares) from the U.S. Senate Committee on Small Business and Entrepreneurship outlines key portions of the bill for small businesses. • ABL COVID-19 Resources (ablusa.org/resources/covid19) and The President’s Coronavirus Guidelines for America (bit.ly/op-slow-spread) are resources to follow for an overview of good practices and guidelines.
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The Paycheck Protection Program (home.treasury.gov/ policy-issues/cares/assistance-for-small-businesses) prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses. The program can be retroactive to Feb. 15, 2020, so employees can return onto payrolls. The loan’s covered period is Feb. 15 to June 30, 2020. In advance of the Paycheck Protection Program process, ABL took several calls from members with questions about the process, and circulated guidance materials from the Small Business Administration (SBA), the Department of the Treasury, other industry groups and business resources. www.tlw.org
