Insights

The Covid-relief act (the Act) signed into law on December 27, 2020 includes a number of provisions meant to juice up the economy amidst the ongoing pandemic.

In early 2020, the CARES Act created a refundable payroll tax credit (the Employee Retention Tax Credit, or the “ERTC”) for eligible payroll costs of certain employers who were negatively impacted by COVID.

Since the original enactment of the Paycheck Protection Program (“PPP”), the IRS has consistently taken the position that borrowers may not claim a deduction for expenses resulting in the tax-free forgiveness of their loan.

On December 20, 2020, Congress passed the Emergency Coronavirus Relief Agreement, which, if approved by the president, will be signed into law as the COVID-related Tax Relief Act of 2021 (CTRA). The CTRA offers approximately $900 billion in relief and stimulus provisions (discussed in more detail here). However, not included in the CTRA is an extension of the mandatory leave provisions of the Families First Coronavirus Response Act (FFCRA), which are set to expire on December 31, 2020. Instead, the CTRA extends the tax credits available to covered employers that continue to offer paid leave under the FFCRA framework through March 31, 2021.

On December 9th, the Ohio Senate concurred with the House amendments to Amended Substitute Senate Bill 39 (S.B. 39), which will be sent to Governor DeWine for his consideration.

’Tis the season for gift giving. Employers should be aware, however, that holiday “gifts” to employees may be taxable wages for federal income and employment tax purposes.

Paycheck Protection Program (PPP) borrowers have been waiting for additional guidance on the deductibility of PPP-funded expenses.

In this edition of Development Incentives Quarterly, we welcome Dennis Shea, publisher & president Area Development.

Pennsylvania Governor Tom Wolf in July signed House Bill 732, which created a new transferable tax credit for businesses manufacturing fertilizers and petrochemicals using dry natural gas.

Nondisclosure agreements (NDAs) or confidentiality agreements are commonplace in commercial transactions, especially in deals that are negotiated privately before any public disclosure, or if parties need to share proprietary information.

Dave Froling and Jeffrey Miller, attorneys in the Vorys Columbus office and members of the state and local tax group, authored an article for Tax Law360 titled “Ohio Remote-Work Tax Bills Would Unduly Burden Employers.” 

On August 8, 2020, President Trump issued a memorandum directing the Treasury Department to enable employers to defer withholding and payment of employees’ share of social security taxes.

In this edition of Development Incentives Quarterly, we welcome Kelli Saunders, senior director of incentive and site selection of DHL Supply Chain in Westerville, Ohio.

Public record requests commonly target major economic development incentives.

Indemnification provisions are an important part of the fine print of many contracts.

Last March, shortly after Governor DeWine required all non-essential employees to work from home, the Ohio General Assembly wisely enacted HB 197 in order to prevent an administrative nightmare for employers.

On August 8, 2020, President Trump issued a memorandum directing the Secretary of Treasury to expand a tax deferral opportunity to the employee’s share of the social security tax and to further explore turning the employee deferral into a waiver. We believe a waiver would require legislative action.

In response to the COVID-19 pandemic, Congress enacted the Families First Coronavirus Response Act (FFCRA).