NNA joins 180 small business groups urging deductibility of Paycheck Protection business expenses

Tonda Rush

Aug 5, 2020

Media Not Found, or not supported

Congress should protect loan forgiveness under the Paycheck Protection Program.  That was the message from more than 180 small business groups to Capitol Hill on August 4 as negotiators strive for a new stimulus financial package.
National Newspaper Association joined the Parity for Main Street Employers coalition supporting relief from the Treasury Department’s intention to impose taxes on payroll, rent, mortgage interest and utilities covered by PPP loans, which otherwise would be considered deductible business expenses. Treasury took the position that allowing deductions would constitute “double dipping” of tax forgiveness.
NNA supports the Small Business Expense Protection Act, S. 3612, which would correct an erroneous interpretation of tax policy by Treasury.
A letter to Congressional leaders stated:
“Congress intended for the loan forgiveness under PPP to be tax-free. (Treasury) reverses that position and eliminates any benefit, let alone a double benefit. If a business has $100,000 of PPP loans forgiven and excluded from its income, but then is required to add back $100,000 of denied business expenses, the result is the same as if the loan forgiveness was fully taxable.”
Signing the letter was a wide range of small business organizations ranging from the Academy of General Dentistry to the Wisconsin Grocers Association. The letter is available here.