ACG WEBINAR: The CARES Act: Understanding the Tax Implications for Private Equity


The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2.2 trillion bill designed to support the economy during the COVID-19 pandemic. The bill provides tax relief and tax incentives for individuals and businesses alike, including an employee retention credit, payroll tax deferral, lessened limitations imposed on deductions, and more. But what are the implications and opportunities for private equity?

During this webinar, Plante Moran experts will discuss the current state of capital markets and recent legislation that affects private equity. We’ll cover the CARES Act tax provisions that impact private equity including:

  • Utilization of net operating losses (NOLs)
  • Increase of the business interest expense deduction
  • Changes to expensing of costs associated with qualified improvement property
  • Deferral of payment of employer portion of Social Security taxes
  • Employer tax credit for employee retention due to COVID-19 closure
  • Changes for excess business losses from pass-through and businesses reported on schedules C, E, and F
  • Corporate AMT refundable credits

We’ll also briefly cover the current disaster relief loan programs including:

  • SBA 7(a) Paycheck Protection Program
  • Title IV direct lending program
  • SBA Economic Injury Disaster Loans
  • Main Street Lending program
  • Troubled Debt Restructuring (TDRs)
Jeremy Sikkema
Plante Moran
Senior Tax Manager

Jeremy is a senior tax manager and leader of Plante Moran’s Tax Transaction Advisory Services and National Tax Office. He has more than twelve years of public accounting experience, specializing in federal and state tax compliance and tax due diligence. He also has considerable experience with state and local taxes and transaction structuring. Many of Jeremy’s clients are portfolio companies of private equity groups that are active in mergers and acquisitions.

Don Stanovcak Jr, JD
Plante Moran

Don is a manager and serves on the firm’s National Tax Office. He has more than seven years of public accounting experience, specializing in providing tax compliance, tax due diligence, and consulting services to private equity funds and portfolio companies in manufacturing, distribution, and service-related industries. Don’s technical experience includes structuring sales and acquisitions, entity choice, and tax reform.

Shawn Dubinsky
Plante Moran

Shawn is a manager on the strategy and operations practice. In his 12+ years of consulting and finance experience, he has served as an advisor to management teams, equity investors, and creditors on navigating change and implementing strategic to improve profitability, capital planning and liquidity management. He specializes in crisis management and creditor negotiation, as well as viability assessments and liquidity/cash flow modelling.