On May 6, 2020, NCACPA requested that both Senator Burr and Senator Tillis co-sponsor S. 3612, a bill to clarify the intent of the CARES Act regarding deductibility of PPP loan proceeds. Senator Cornyn (R-TX) has introduced S. 3612, the Small Business Expense Protection Act of 2020, along with Senators Wyden (D-OR), Rubio (R-FL), Carper (D-DE) and Grassley (R-IA). This bipartisan bill would clarify that the receipt and forgiveness of Coronavirus assistance through the Paycheck Protection Program (PPP) does not affect the deductibility of ordinary business expenses.
We’ve already received word of Senator Burr’s intent to cosponsor this bill, and we will keep you updated on the progress of S. 3612.