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 “second draw” loans, it failed to address AGC’s biggest priority for PPP: reversing the Internal Revenue Service’s (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’s 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.