Small Business Expense Protection Act of 2020

Bill: 116-s-3612
Sponsor: full_name: Sen. Cornyn, John [R-TX]
Introduced: 2020-05-05
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

Small business
Latest action: action_date: 2020-05-05
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2020-05-05
action_desc: Introduced in Senate
text: <p><b>Small Business Expense Protection Act of 2020</b></p> <p>This bill amends the Coronavirus Aid, Relief, and Economic Security Act to provide that tax deductions for ordinary business expenses and other tax incidents shall not be affected by the exclusion from gross income of amounts related to loan forgiveness received in response to COVID-19 (i.e., coronavirus disease 2019). </p>

tv_txt: II 116th CONGRESS 2d Session S. 3612 IN THE SENATE OF THE UNITED STATES May 5, 2020 Mr. Cornyn (for himself, Mr. Grassley , Mr. Wyden , Mr. Rubio , and Mr. Carper ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To clarify for purposes of the Internal Revenue Code of 1986 that receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses.

1. Short title This Act may be cited as the Small Business Expense Protection Act of 2020 . 2. Clarification of treatment of business expenses (a) In general Subsection (i) of section 1106 of the CARES Act ( Public Law 116–136 ) is amended— (1) by striking 1986, any amount and inserting “1986— (1) any amount , (2) by striking the period at the end and inserting , and , and (3) by adding at the end the following new paragraph: (2) no deduction shall be denied or reduced, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1). . (b) Effective date The amendments made by this section shall apply as if included in the enactment of section 1106 of the CARES Act ( Public Law 116–136 ).