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JCT: CARES Act Tax Relief Would Cost $591.1 Billion Over 10 Years

Dated Mar. 27, 2020

Citations: JCX-11-20


Division A of H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which would provide a variety of tax relief measures to businesses and individuals amidst the coronavirus pandemic, would cost $591.1 billion from 2020 to 2030, according to a March 26 estimate (JCX-11-20) from the Joint Committee on Taxation.

Notable provisions include a recovery rebate for individuals that would cost $292.4 billion over the 10-year period, an employee retention credit costing $54.6 billion, and a modification of limitations on losses for taxpayers other than corporations costing $169.6 billion.

The JCT also estimated that the modification for net operating losses, which would raise the NOL limitation to 100 percent of taxable income and allow a five-year carryback, would cost $25.5 billion over the next 10 years. A modification of the limitation on business interest would cost $13.4 billion over the same time period.

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