As part of state-wide efforts to assist Arizona businesses and employees impacted by the COVID-19 public health situation, the Arizona Department of Revenue has dedicated this page to connect businesses to available statewide resources as they work to combat the spread of COVID-19. This page will be updated regularly as new information becomes available.
Coronavirus Business Relief
The federal CARES Act includes relief for businesses affected by the coronavirus as outlined below. In order to assist businesses, the Arizona Commerce Authority has established a special section on their website. Visit www.azcommerce.com/covid-19/ for more information.
Paycheck Protection Program
- Increases the government guarantee of loans made for the Payment Protection Program under the Small Business Act to 100 percent through December 31, 2020.
- Authorizes the Small Business Administration (SBA) to provide additional financial awards to resource partners counseling, training, and education on SBA resources and business resiliency to small business owners.
State Trade Expansion Program
- Allows for federal grant funds appropriated to support the State Trade Expansion Program (STEP) in fiscal year 2018 and 2019 to remain available for use through fiscal year 2021 and allows state STEP participants to be reimbursed for events cancelled due to COVID19, so long as it does not exceed their federal grant.
- Establishes that a borrower is eligible for loan forgiveness equal to the amount spent by the borrower during an 8-week period after the origination date of the loan on payroll costs, interest payment on any mortgage incurred prior to February 15, 2020, payment of rent on any lease in force prior to February 15, 2020, and payment on any utility for which service began before February 15, 2020.
Minority Business Development Agency
- Authorizes $10 million for the Minority Business Development Agency to provide grants to Minority Business Centers and Minority Chambers of Commerce for providing counseling, training, and education on federal resources and business response to COVID-19 for small businesses.
Emergency Economic Injury Disaster Loans (EIDL) Grants
- Expands eligibility for access to Economic Injury Disaster Loans to include Tribal businesses, cooperatives, and Employee Stock Ownership Plans with fewer than 500 employees or any individual operating as a sole proprietor or an independent contractor during calendar year 2020.
Subsidy for Certain Loan Payments
- Requires the SBA to pay the principal, interest, and any associated fees that are owed on covered loans for a six month period starting on the next payment due. Loans that are already on deferment will receive six months of payment by the SBA beginning with the first payment after the deferral period. Loans made up until six months after enactment will also receive a full 6 months of loan payments by the SBA. SBA must make payments no later than 30 days after the date on which the first payment is due. Covered loans are defined as an existing 7(a) (including Community Advantage), 504, or microloan product.
Workforce Response Activities
- Provides local workforce boards with additional flexibility to use funds received under the Workforce Innovation and Opportunity Act for administrative costs, including for online resources. Allows governors to utilize reserved workforce funds on rapid response activities in response to COVID-19.
Relief for Workers
The federal CARES Act includes relief for workers affected by the coronavirus as outlined below. In order to assist workers with these provisions, the Arizona Department of Economic Security has established a special section on its webpage. Visit des.az.gov/services/coronavirus for more information.
Pandemic Unemployment Assistance
- Creates a temporary Pandemic Unemployment Assistance program through December 31, 2020 to provide payment to those not traditionally eligible for unemployment benefits who are unable to work as a direct result of the coronavirus public health emergency.
Emergency Unemployment Relief for Governmental Entities and Nonprofit Organizations
- Provides payment to states to reimburse nonprofits, government agencies, and Indian tribes for half of the costs they incur through December 31, 2020 to pay unemployment benefits.
Emergency Increase in Unemployment Compensation Benefits
- Provides an additional $600 per week payment to each recipient of unemployment insurance or Pandemic Unemployment Assistance for up to four months.
Temporary Full Federal Funding of the First Week of Compensable Regular Unemployment for States with No Waiting Week
- Provides funding to pay the cost of the first week of unemployment benefits through December 31, 2020 for states that choose to pay recipients as soon as they become unemployed instead of waiting one week before the individual is eligible to receive benefits.
Pandemic Emergency Unemployment Compensation
- Provides an additional 13 weeks of unemployment benefits through December 31, 2020 to help those who remain unemployed after state unemployment benefits are no longer available.
Waiver of the 7-Day Waiting Period for Benefits under the Railroad Unemployment Insurance Act
- Temporarily eliminates the 7-day waiting period for railroad unemployment insurance benefits through December 31, 2020.
Enhanced Benefits under the Railroad Unemployment Insurance Act
- Provides an additional $600 per week payment to each recipient of railroad unemployment insurance or Pandemic Unemployment Assistance for up to four months.
Extended Unemployment under the Railroad Unemployment Insurance Act
- Provides an additional 13 weeks of unemployment benefits through December 31, 2020 to help those who remain unemployed after weeks of regular unemployment benefits are no longer available
- Provides that applications for unemployment compensation and assistance with the application process, to the extent practicable, be accessible in person, by phone, or online.
Coronavirus Federal Tax Relief
The federal Coronavirus Aid, Relief and Economic Security (CARES) Act includes relief for taxpayers affected by the coronavirus as outlined below. In order to assist taxpayers with these provisions, the IRS has established a special section on their webpage. Visit www.irs.gov/coronavirus for more information.
2020 recovery rebates for individuals
- Provides a $1,200 ($2,400 married) rebate to taxpayers with adjusted gross income up to $75,000 ($150,000 married) and an additional $500 per child. The rebate amount is reduced by $5 for each $100 that a taxpayer’s income exceeds the phase-out threshold and is phased-out for single filers with incomes exceeding $99,000, $146,500 for head of household filers with one child, and $198,000 for joint filers with no children.
Special rules for use of retirement funds
- Waives the 10 percent early withdrawal penalty for distributions up to $100,000 from qualified retirement accounts for coronavirus-related purposes made on or after January 1, 2020.
- Subjects income attributable to distributions to tax over three years, and allows taxpayers recontribute the funds to an eligible retirement plan within three years without regard to that year’s cap on contributions.
- Provides flexibility for loans from certain retirement plans for coronavirus-related relief.
Temporary waiver of required minimum distribution rules for certain retirement plans and accounts
- Waives the required minimum distribution rules for certain defined contribution plans and IRAs for calendar year 2020.
Allowance of partial above the line deduction for charitable contributions
- Permits taxpayers to deduct up to $300 of cash contributions to charitable organizations, whether they itemize their deductions or not.
Modification of limitations on charitable contributions during 2020
Increases the limitations on deductions for charitable contributions by individuals who itemize, as well as corporations as follows:
- For individuals, the 50 percent of adjusted gross income limitation is suspended for 2020;
- For corporations, the 10 percent limitation is increased to 25 percent of taxable income; and
- Increases the limitation on deductions for contributions of food inventory from 15 percent to 25 percent.
Economic Impact Payments ( stimulus checks ) are offered by the Internal Revenue Service, please visit the IRS' website at https://www.irs.gov/coronavirus/economic-impact-payments.