PPP Loan Deductibility Remains Top AGC Objective
On October 21, legislation to provide an additional half trillion in COVID-relief failed to advance in the Senate. The Senate also considered a narrower bill to extend, modify, and provide additional funding for the Paycheck Protection Program (PPP), but it was blocked as well. While the PPP legislation provided some important improvements to the PPP program and allowed businesses to take out 鈥渟econd draw鈥 loans, it failed to address AGC鈥檚 biggest priority for PPP: reversing the Internal Revenue Service鈥檚 (IRS) decision to disallow tax deductions for business expenses associated with PPP loan forgiveness. This decision will lead to a surprise tax increase on PPP loan recipients, and AGC is continuing to work with coalition partners to overturn the IRS鈥檚 actions.
If you have any questions or concerns, please contact Matthew Turkstra, Director of Tax, Fiscal Affairs, and Accounting, at matthew.turkstra@agc.org or (202) 547-4733.