NRCA urges all members to reach out to their members of Congress to advocate in support of passing the Small Business Expense Protection Act of 2020 (H.R. 6821/S. 3612) to ensure employers are provided with tax deductibility of expenses paid for with forgiven Paycheck Protection Program loans as intended by Congress.
When the PPP was established by the CARES Act in March, the law stated any loan forgiveness provided to qualifying employers under the program would be excluded from the borrower’s taxable income. However, at the direction of the Treasury Department, the IRS issued Notice 2020-32, which specifies expenses paid with PPP loans that are forgiven will not be tax-deductible. Absent new legislation to clarify this policy, employers who receive PPP loan forgiveness could see an unexpected tax bill in 2021.
For more information and to take action and email your legislators, visit the NRCA Grassroots Advocacy Network at roofingadvocacy.nrca.net.
