Blocks up to 37% Tax Increase by Allowing Deductibility
AGC blocked a surprise federal tax increase of up to 37 percent on Paycheck Protection Program (PPP) loan forgiveness, benefiting tens of thousands of construction firms. AGC was able to secure a provision in the year-end COVID-relief and government funding bill enacted Dec. 27, 2020 that overturned the IRS position barring deductions for PPP loan-forgiven business expenses. In addition, the association secured provisions providing for expedited loan forgiveness for PPP loans less than $150,000, expanded additional expense categories for PPP loan forgiveness and more. For a detailed analysis of what was included in the year-end bill from a construction industry perspective, click here.