Wyden Introduces Bill to Clarify Small Business Expense Deductions Under PPP
Washington, D.C. -- U.S. Sen. Ron Wyden today joined with a bipartisan group of colleagues to introduce legislation that would clarify the Small Business Administration’s Paycheck Protection Program (PPP) so small businesses can deduct expenses paid with a forgiven PPP loan from their taxes.
“Treasury's guidance barring deductions for expenses paid by PPP loans is a gut punch for businesses struggling to stay afloat,” said Wyden, ranking member of the Senate Finance Committee. “It defies commonsense for Treasury to provide help on the front end, but then take it away on the back end. Our bipartisan bill would fix this mistake and ensure businesses feel confident using PPP funds to keep their workers employed.”
Joining Wyden in introducing the Small Business Expense Protection Act today are U.S. Sens. Tom Carper (D-Del.), John Cornyn (R-TX), Finance Committee Chairman Chuck Grassley (R-IA), and Small Business Committee Chairman Marco Rubio (R-FL)
The Paycheck Protection Program was created in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to maximize small businesses’ ability to maintain liquidity, retain their employees, and recover from the pandemic as soon as possible. Last Thursday, the IRS issued a notice that said small businesses cannot deduct these business expenses. This notice is contrary to congressional intent.
The Small Business Expense Protection Act is supported by the American Institute of Certified Public Accountants (AICPA).
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