One provision that was unfortunately not included in the Senate Republican Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, was the overturning of an Internal Revenue Service (IRS) ruling related to the deductibility of expenses associated with income from Paycheck Protection Program (PPP) loan forgiveness. Despite clear congressional intent to ensure that PPP loan forgiveness be untaxed, earlier this year the IRS ruled that any expenses associated with PPP loan forgiveness were not deductible. In May, AGC led a coalition effort with 152 trade associations, calling for congressional action to overturn this ruling. The Democratically-introduced and supported HEROES Act, which passed the House of Representatives earlier this year, contained a provision to overturn the IRS ruling. AGC will continue to fight for this provision to be included in any legislation responding to COVID-19.
If you have additional questions, please contact Matthew Turkstra, Director of Tax, Fiscal, Affairs, and Accounting, at email@example.com, or (202) 547-4733.