US congress passes HR748 bill to give cash to Americans and for other things

Congress has passed, and the president has signed into law, HR748, the CARES bill. I work with accounting to write software to help them so I have to be familiar with some of the accounting terms. While full-time and part-time employees are covered in certain sections of this bill, contract employees are not as they are independent contractors, aka self-employed. So, Uber drivers and similar employees are contract employees.

Loan forgiveness of loans under Small Business Act, or mortgage. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#H2A93DA7DFCA5414E9AEBF383EBAA0B77
Much money put away for various federal bureaus. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#H2D81BCE02F2246D5BC3CEA6081E25F4D
Unemployment assistance covers people who have COVID-19 and people who are out of work due to a quarantine. Unemployment payments cover Jan 27, 2020 through Dec 31, 2020. If states use this federal money they agree to pay the normal state unemployment benefits PLUS $600 from the feds to each person. This is assumed to be $600 per month, the bill wasn’t clear on this. In order to get UE payments, for most states, you must have written proof you are actively seeking work. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#H94475F15C4074D4388A3AA2FA6EAC731
Businesses to get paycheck protection loans. ” in addition to small business concerns, any business concern, nonprofit organization, veterans organization, or Tribal business concern described in section 31(b)(2)(C) shall be eligible to receive a covered loan ” Loans only for businesses with 500 full-time employees or less. The number of employees counted are also part-time or other. See the bill.
Sole proprietorships also can get the loans.
Max loan amount: https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#HB774EEF7D0A34671AE7C32877C38ACF2
Loan allowable uses include: payroll, costs related to health care, costs related to salary people, mortgage, utilities, interest on other debt . https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#H5427935EB27445449B263BA4B4CB51B4
There will be no fees collected for the loan. No collateral required. Interest rate shall not exceed 4% annually. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#H761CAD0A46874287A15F554E9604EAD8
There will be unemployment assistance to states as part of this bill.
Tax credits for each adult will be $1200, and for each qualifying child $500. Sec 6428. This adjusted gross income disqualifies people from the credit: Join return income of $150,000 or more, single income $75,000 or more. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#H812CBD5D00164385940468EB6220045E
1. Illegal aliens excluded. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#H8356D80460AC443B8E3C1454B3D2CF64
2. Refunds given to Americans, but also a credit to make sure the refund is not taxed. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#HC9192BE4248E47DDBE2B96FB2590DF94
3. It appears this is an “advanced credit”. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#H5995425C43A644C7BF268F663E7A023D
This bill also authorizes more money for salaries for personnel for Dept of Treasury, Social Security Administration, IRS (part of the Treasury), but only through Sep 30, 2021.
Charitable contribution limit increased to 25% of AGI. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#H8D47935B46674E368099D0935D31A4A8
Subtitle C: Employers get 50% credit of “qualified wages” paid up to $10,000 per employee. Wages are for full-time and part-time employees and include cost of health care. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#HC818CAB79CBE48F3AEAFA65568C9E6C8
Tax credit for employers who had to close due to COVID-19 and who retained employees. https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR748%22%5D%7D&r=1&s=1#HC818CAB79CBE48F3AEAFA65568C9E6C8

Now my notes:

A tax credit has more value than a check because a tax credit will not be taxed like a check would. A check is an “income event” and so would be taxed by IRS rules.