Situational Awareness
The House and Senate will convene today to pass a massive piece of legislation to fund the federal government, provide for coronavirus relief, and extend or make permanent expiring tax provisions.
Coronavirus Relief
Congressional leaders came to an agreement on a $900 billion coronavirus relief measure. Contained in the package are a number of items of benefit to the club community. While 501(c)(7) clubs remain ineligible for the Paycheck Protection Program (PPP), the program was extended and those who qualified for loans in the first round will be eligible for a second round of loan payments. The package also contains a restoration of 100% deductibility for business meals—the deduction will be available for two years. The bill also expands and enhances the Employee Retention Tax Credit (ERTC). Full details have yet to be released as lawmakers are finalizing the legislative language.
NCA has been engaged with lawmakers on both sides of the aisle as the negotiations were proceeding. It appeared fairly early on in the process that there was little traction to expand the eligibility requirements of the PPP, though some 501(c)(6) organizations will now be eligible in the next round of loans. Again, there wasn’t resistance specifically related to whether clubs should qualify, but an over-riding concern to make the numbers work to stay around the $900 billion level. With regard to the ERTC, I made direct appeals for an extension of the program to a few key players in the negotiations. The main point I delivered is that if policymakers believe it is imperative to restart the PPP and allow some businesses a second run, it is inconsistent not to do the same for those participating in the ERTC—particularly because if a business did use the ERTC they are ineligible for PPP funds. In the end, we were successful in getting the provision in the final package.
H-2B Visa Authority Case Dismissed
On Friday, the U.S. Appeals Court for the Fourth District dismissed a case brought by a group of seasonal amusement and landscaping businesses over a Department of Homeland Security (DHS) rule from 2008 with respect to that required a labor certification before hiring H-2B workers. The groups filed their lawsuit in 2016 and the three-judge panel unanimously ruled that the companies waited too long to file suit and that the Department of Labor and DHS have a responsibility to issue rules in order to streamline the certification process. It was further noted that the Immigration and Naturalization Act specifically grants the DHS to consult with other departments in order to establish a formal, consistent process for considering visa applications.
Georgia Senate Races in Final Stretch
The contests to fill Georgia’s U.S. Senate seats are in their final two weeks. No doubt Georgians will welcome a respite from constant political advertisements. It is estimated that $300 billion is being spent by candidates and other independent organizations to influence the race. Polls show the races are tight with both Republican incumbents holding slight leads. Turnout is key to any political contest and both parties are heavily investing in turnout efforts.
Webinar: Understand Your Tax Assessment
Tax assessments can often be confusing. On Thursday, January 14 at 2 p.m. ET, join Larry A. Hirsh, president of Golf Property Analysts, for an in-depth review of the fundamentals of private club real estate tax assessments and a discussion of COVID-19’s effect on club real estate values and tax assessments. Register here.
Registration is free for NCA members and $99 for nonmembers.