The CARES Act: Understanding the tax implications for private equity
- April 16, 2020
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2.2 trillion bill designed to support the economy during the COVID-19 pandemic. The bill provides tax relief and tax incentives for individuals and businesses alike, including an employee retention credit, payroll tax deferral, lessened limitations imposed on deductions, and more.
But what are the implications and opportunities for private equity?
During this on-demand webinar, Plante Moran experts discuss the current state of capital markets and recent legislation that affects private equity. We cover the CARES Act tax provisions that impact private equity including:
- Utilization of net operating losses (NOLs)
- Increase of the business interest expense deduction
- Changes to expensing of costs associated with qualified improvement property
- Deferral of payment of employer portion of Social Security taxes
- Employer tax credit for employee retention due to COVID-19 closure
- Changes for excess business losses from pass-through and businesses reported on schedules C, E, and F
- Corporate AMT refundable credits
We also briefly cover the current disaster relief loan programs, including:
- SBA 7(a) Paycheck Protection Program
- Title IV direct lending program
- SBA Economic Injury Disaster Loans
- Main Street Lending program
- Troubled Debt Restructuring (TDRs)
For a copy of the on-demand webinar slides, click here.