Returning Value Blog

• Infrastructure plan is an opportunity for the industry to improve its reputation
• Construction firms are entering into joint ventures to bid on large projects
• Data analytics can identify labor overages: case study

President Biden’s infrastructure plan is set to improve failing infrastructure, rebuild the economy and create new jobs. As of this writing, the plan, which Biden originally released on March 31 as a $2 trillion capital injection over 10 years, is a $579 billion proposal that has bipartisan agreement, though Democrats have signaled the bill may only move through Congress in tandem with a larger spending and tax increase package, which they may try to pass via the reconciliation process.

Despite the COVID-19 pandemic, government officials see a significant increase in the number of new businesses being launched. From June 2020 through June 2021, the U.S. Census Bureau reports that business applications are up 18.6%. The Bureau measures this by the number of businesses applying for an Employer Identification Number.

The State of Alabama will be participating in the 16th annual Back-to-School Sales Tax Holiday weekend for school-related items.  This special shopping period will start at 12:01 a.m. on Friday, July 16, 2021, and end at midnight on Sunday, July 18, 2021. 

Alabama Governor Kay Ivey on May 14, 2021signed House Bill 588 into law, amending the Electing Pass-Through Entity Tax Act ("Act 2021-1") enacted on February 12, 2021. The new law changes the taxable income reporting requirements for pass-through entity (PTE) members and authorizes the Alabama Department of Revenue to waive interest and penalties for underpayments of first-quarter estimated taxes as a result of the bill's retroactive effective date. (For prior coverage of the original version of Act 2021-1, (see Machen McChesney's blog).

On April 28, 2021, the Biden administration unveiled a $1.8 trillion plan to provide assistance to middle- and low-income families that would be largely funded by tax increases on wealthy Americans. The plan is expected to be fleshed out during President Biden’s first address to a joint session of Congress. 

During last year's campaign, then-candidate Joe Biden stated that he would use higher taxes to partially fund various spending priorities if he were elected president. Now that the Democrats control the White House and both the House and Senate, tax increases could be on the horizon. Details of the Biden administration's proposed tax changes are gradually coming into focus, and on March 31, President Biden unveiled his infrastructure spending plan, which will be funded in part by an increase in the corporate tax rate to 28%.

The American Rescue Plan Act of 2021 (ARPA), signed into law by President Biden on March 11, 2021, provides additional major relief to individuals and businesses that continue to be impacted by the COVID-19 pandemic. The ARPA includes the following provisions related to individual taxpayers:​

On February 12, 2021, Alabama enacted HB 170 / Act # 2021-1. The new law makes several important changes to Alabama income taxes, including the following: formalizing the state’s treatment of Paycheck Protection Program (PPP) loans and related expenses in line with the governor’s prior proclamation, adopting a single-sales factor apportionment formula, addressing federal tax reform provisions that had caused issues for Alabama taxpayers and adopting an elective pass-through entity (PTE) tax regime similar to other states. The income tax reform is a mixed bag that will impact a wide range of Alabama taxpayers.

Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications.

The Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) reopened the week of January 11. If you’re fortunate to get a PPP loan to help during the COVID-19 crisis (or you received one last year), you may wonder about the tax consequences.