Senate Bill Would Make Expenses Paid With PPP Loans Deductible

May 07, 2020

On May 6, 2020, a bipartisan group of senators introduced a measure – S.3612 – to clarify that the SBA’s Paycheck Protection Program does not affect the tax treatment of ordinary business expenses paid with PPP loan proceeds – such expenses would remain deductible for purposes of determining the taxable income of the business.