NECA and a coalition of organizations have signed a letter urging Congress to enact legislation before the end of the year that includes a technical correction addressing the tax treatment of loan forgiveness under the Paycheck Protection Program (PPP).
The CARES Act clearly stated that any portion of a Paycheck Protection Program (PPP) loan that qualified for loan forgiveness "shall be excluded from gross income" for tax purposes. In contradiction to Congressional intent, the IRS issued Notice 2020-32, which specified that "no deduction is allowed under the Internal Revenue Code…if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the [CARES Act].”
NECA encourages you to Take Action and tell your Representative to act before the end of the year to ensure PPP loan forgiveness is not considered taxable income.
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