
New Relief Bill Has Good News for Businesses that Received a PPP Loan
The U.S. Senate and House of Representatives overwhelmingly passed a new $900 billion COVID-19 relief bill this week. The legislation, the Consolidated Appropriations Act, 2021, also ensures tax deductibility for business expenses paid with forgiven Paycheck Protection Program (PPP) loans. The bill also specifies that business expenses paid with forgiven PPP loans are tax-deductible. This supersedes IRS guidance that such expenses could not be deducted and brings the policy i