Bipartisan legislation would protect businesses’ expenses associated with Paycheck Protection Program loans.
6/29/2020 12:30
ACA International is supporting bipartisan legislation aimed at protecting small businesses enrolled in the Paycheck Protection Program (PPP) through expense deductions.
The Small Business Expense Protection Act of 2020, S. 3612, was introduced in May and referred to the Senate Finance Committee.
“Under the PPP, we appreciate that Congress took steps to ease the financial burdens of businesses by clarifying that cancellation of debt income is tax free and does not result in a loss of tax attributes,” said ACA International CEO Mark Neeb in a letter to U.S. Sens. Chuck Grassley, R-Iowa, Ron Wyden, D-Ore., John Cornyn, R-Texas, Marco Rubio, R-Fla., and Tom Carper, D-Del. “However, since the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, there is confusion about whether small-business borrowers may deduct expenses that relate to loans forgiven under the PPP.”
Many ACA International members have utilized the benefits of the PPP and ACA’s membership is made up primarily of small businesses.
“ACA agrees with the aim of this legislation to address the discrepancy small businesses face now that the U.S. Department of Treasury and the Internal Revenue Service are interpreting the law in a way that is preventing businesses from deducting expenses associated with PPP loans,” Neeb said in the letter.
Related Content from ACA International:
Paycheck Protection Program Fixes Approved by U.S. Senate
Working with the Small Business Administration
Exploring New Guidance on the SBA Loan Programs
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