Summary of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)
Last Thursday, March 19, the Senate GOP introduced a massive stimulus legislation, the third bill, to combat the impact of the coronavirus crisis. The proposed legislation, entitled the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), focuses on providing financial assistance in the billions of dollars for individuals and industries hit hardest by the COVID-19 crisis. Among the many items proposed, the CARES Act would provide direct cash payments of $1,200 to taxpayers, extend the federal tax filing deadline to July 15, liberalize net operating loss rules, and modify interest expense limitations for businesses. The bill would also provide financial aid to U.S. airports and $50 billion in loans and loan guarantees to passenger airline companies, both of which may provide relief to the Guam International Airport Authority (GIAA) and its signatory airlines. Just a week before the CARES Act was introduced, on March 11, the GIAA Board of Directors approved a 100% rebate on landing and apron fees worth $740,000, in response to requests made by airlines affected by the coronavirus. However, at this point, it is unclear what provisions would apply to Guam taxpayers, businesses, and government agencies. Democrats have objected to provisions of the Senate bill other than those described above. Nevertheless, it appears that differences will be resolved shortly, and the bill will be enacted into law.