Protecting the Paycheck Protection Program Act of 2020

Bill: 116-hr-6754
Sponsor: full_name: Rep. Fletcher, Lizzie [D-TX-7]
Introduced: 2020-05-08
Policy area: Taxation
Subjects: Business expenses

Cardiovascular and respiratory health

Emergency medical services and trauma care

Government lending and loan guarantees

Income tax deductions

Income tax exclusion

Infectious and parasitic diseases

Interest, dividends, interest rates

Public utilities and utility rates

Small business

Wages and earnings
Latest action: action_date: 2020-05-08
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2020-05-08
action_desc: Introduced in House
text: <p><b>Protecting the Paycheck Protection Program Act of 2020</b></p> <p>This bill amends the Coronavirus Aid, Relief, and Economic Security Act to provide that otherwise deductible expenses and other tax incidents shall not be affected by the exclusion from gross income for loan foregiveness under the Paycheck Protection Program of such Act. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6754 IN THE HOUSE OF REPRESENTATIVES May 8, 2020 Mrs. Fletcher (for herself, Ms. Craig , and Mr. Kim ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To provide clarification regarding the tax treatment of expenses paid or incurred with proceeds from Paycheck Protection Program loans.

1. Short title This Act may be cited as the Protecting the Paycheck Protection Program Act of 2020 . 2. Clarification of tax treatment of expenses paid or incurred with proceeds from Paycheck Protection Program loans (a) In general For purposes of the Internal Revenue Code of 1986 and notwithstanding any other provision of law, any deduction and the basis of any property shall be determined without regard to whether any amount is excluded from gross income under section 1106(i) of the CARES Act. (b) Clarification of exclusion of loan forgiveness Section 1106(i) of the CARES Act is amended to read as follows: (i) Taxability For purposes of the Internal Revenue Code of 1986, no amount shall be included in the gross income of the eligible recipient by reason of forgiveness of indebtedness described in subsection (b). . (c) Effective date Subsection (a) and the amendment made by subsection (b) shall take effect as if included in section 1106 of the CARES Act.