Publication

March 27, 2020Client Alert

House Passes the Phase III COVID-19 Relief Bill, On to the President for Signature

The CARES Act would provide five-year NOL carrybacks for tax years 2018, 2019, and 2020. Since the year 2020 is likely to bring the largest corporate losses in U.S. history, the NOLs for 2020 could be unusually valuable. The NOL carrybacks would provide an immediate tax refund from prior tax years. A technical fix would allow pass-through entities to claim the NOLs as well. Meanwhile restaurants and retailers would be the main beneficiaries of the QIP fix.

The 30 percent limit on interest expense raises $18 billion and $20 billion in 2019 and 2020 according to the same score. We extrapolate cautiously that increasing the deductible percentage of interest expense back to 50 percent for two years would cost the Treasury about $50 billion in total. We do not have enough data to estimate the value of QIP and the AMT tax credits, but they are sufficiently important issues to the business community that would judge them non-trivial in scale.

White House COVID-19 Updates:

How to Help – If you or your organization is interested in helping the effort to combat the spread of COVID-19, FEMA has established a website (www.fema.gov/coronavirus/how-to-help) with more information. Examples for the private sector include:

  • To sell medical supplies or equipment to the federal government, please email specifics to covidsupplies@fema.dhs.gov.
  • If you have medical supplies or equipment to donate, please provide us details on what you are offering.
  • If you are a private company that wants to produce a product related to the COVID response – email nbeoc@max.gov.
  • If you are a hospital and other companies in need of medical supplies, contact your state Department of Public Health and/or Emergency Management.
  • For non-medical supplies, services or equipment, if you are interested in doing business with FEMA, visit our Industry Liaison Program.

For additional information please visit FEMA’s website: https://www.fema.gov/coronavirus/.

White House COVID-19 Updates

  • President Trump, Vice President Pence, and Members of the Coronavirus Task Force Hold a Press Briefing (VIDEO)
  • President Trump Approves Disaster Declarations in Florida, IowaLouisiana, and Texas

HHS Announces Grants to Provide Meals for Older Adults (HERE)

  • Today, HHS is announcing $250 million in grants from the Administration for Community Living to help communities provide meals for older adults. The Families First Coronavirus Response Act, signed into law by President Trump on March 18, 2020, provided the additional funding for the nutrition services programs authorized by the Older Americans Act of 1965.

OCR Issues Guidance to Help Ensure First Responders and Others Receive Protected Health Information about Individuals Exposed to COVID-19 (HERE)

  • The Office for Civil Rights at the U.S Department of Health and Human Services issued guidance on how covered entities may disclose protected health information about an individual who has been infected with or exposed to COVID-19 to law enforcement, paramedics, other first responders, and public health authorities in compliance with the Health Insurance Portability and Accountability Act of 1996 Privacy Rule.

Secretary DeVos Directs FSA to Stop Wage Garnishment, Collections Actions for Student Loan Borrowers, Will Refund More Than $1.8 Billion to Students, Families (HERE)

  • Secretary DeVos announced today that, due to the COVID-19 national emergency, the Department will halt collection actions and wage garnishments to provide additional assistance to borrowers. This flexibility will last for a period of at least 60 days from March 13, 2020.

USDA Warns of Scams Targeting SNAP Recipients (HERE)

  • Be on the lookout for potential scammers using the COVID-19 situation to steal personal information, the USDA warned Supplemental Nutrition Assistance Program participants today. USDA is issuing this warning after receiving reports of several possible SNAP fraud attempts.

USDA Implements Immediate Measures to Help Rural Residents, Businesses and Communities Affected by COVID-19 (HERE)

  • USDA Rural Development has taken a number of immediate actions to help rural residents, businesses and communities affected by the COVID-19 outbreak. Rural Development will keep our customers, partners, and stakeholders continuously updated as more actions are taken to better serve rural America.

DHS Initiating Crucial Research to Mitigate COVID-19 (HERE)

  • DHS Science and Technology Directorate is conducting ongoing research that will help scientists better understand the coronavirus that causes the disease known as COVID-19, and methods to prevent its spread. In the Trump Administration’s whole of government effort, this work is being done at the National Biodefense Analysis and Countermeasures Center laboratory in cooperation with the DHS Countering Weapons of Mass Destruction Office.

Nearly 10,000 Guardsmen Called Up for COVID-19 Response (HERE)

  • Nearly 10,000 National Guardsmen called up across the United States, with more expected soon, are performing a variety of missions in response to COVID-19 pandemic response efforts.

Efforts Underway to Increase Sterilization Capacity in Response to the COVID-19 Pandemic (HERE)

The EPA is providing an update on efforts underway with the Georgia Environmental Protection Division to safely and quickly increase production at sterilization facilities in the cities of Covington and Madison in response to the dramatically increased need for sterile medical equipment during the COVID-19 response.

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