JCT Releases Corrected CARES Act Revenue Estimates

Division A of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), providing a variety of tax relief measures to businesses and individuals amid the coronavirus pandemic, will cost $556.5 billion from 2020 to 2030, according to corrected estimates (JCX-11R-20) released April 23 by the Joint Committee on Taxation.

Notable provisions include a recovery rebate for individuals, projected to 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 $135 billion.

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

The JCT document corrects JCX-11-20.