Protecting the Paycheck Protection Program Act of 2020

Protecting the Paycheck Protection Program Act of 2020

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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6754 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6754

 To provide clarification regarding the tax treatment of expenses paid 
   or incurred with proceeds from Paycheck Protection Program loans.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting the Paycheck Protection 
Program Act of 2020''.

SEC. 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.
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