Final answer:
The article discusses tax incentives and relief provisions from the CARES Act and the American Rescue Plan Act that offer businesses, like Marathon, financial support during the pandemic. This includes benefits like carrying back net operating losses and the Employee Retention Credit to mitigate financial challenges and maintain employee payrolls.
Step-by-step explanation:
The tax incentives and relief provisions outlined in the article from WorldOil Magazine, which stated that 'Marathon Sets Up for $1.1 Billion Tax Refund via Coronavirus Aid Law,' relate to measures that were part of the CARES Act and the American Rescue Plan Act. These legislative acts included various tax incentives and relief provisions to help businesses like Marathon during the pandemic. The provisions facilitated cash flow and liquidity provision, leveraging tax attributes and increasing access to cash, especially through tax refunds.
For instance, key provisions included a tax benefit relating to net operating losses, allowing businesses to carry back losses from 2020 to previous tax years, where the tax rate was higher, thus generating immediate tax refunds. Moreover, the Employee Retention Credit was introduced to encourage businesses to keep employees on their payroll, despite the challenges posed by the COVID-19 crisis.
Additionally, the tax provisions of the American Rescue Plan Act aimed at providing direct aid to state, local, and tribal governments align with the broader federal response to support economic stability and public health initiatives, such as support for vaccinations and the vaccine rollout across the nation.