The American Farm Bureau Federation (AFBF) is among the groups pressing Congress to pass the Small Business Expense Protection Act, which would allow small businesses to deduct expenses paid with a forgiven Paycheck Protection Program loan from their taxes.
Currently IRS rules prohibit deducting expenses that are paid using funds from a PPP loan that is forgiven. Lawmakers intended for those funds to remain deductible, supporters of the legislation say, and they urged Congress to make the correction.
“The Small Business Expense Protection Act will fix this misinterpretation and reestablish the ability of small businesses that have received PPP loans to deduct business expenses as the CARES Act intends,” AFBF and other groups said in a letter to House Speaker Nancy Pelosi, D-Calif., House Minority Leader Kevin McCarthy, R-Calif., Senate Majority Leader Mitch McConnell, R-Ky. and Senate Minority Leader Chuck Schumer, D-N.Y.
The measure is currently awaiting consideration before the House Ways and Means Committee and the Senate Finance Committee.
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