WASHINGTON, D.C. – U.S. Senators Jacky Rosen (D-NV) and Catherine Cortez Masto (D-NV) announced their co-sponsorship of S.3612, the Small Business Expense Protection Act. This bipartisan legislation, which was introduced by Senator John Cornyn (R-TX), would clarify that ordinary business expenses paid for using funding obtained through the Small Business Administration’s Paycheck Protection Program (PPP) are tax-deductible.
“During this difficult time, it is critical that we take steps to ensure Nevada’s small business community is protected from the effects of the coronavirus pandemic,” said the Senators. “Over 99 percent of businesses in Nevada are small businesses, and each day during this pandemic they are faced with difficult choices in order to remain in operation. This bipartisan bill would allow Nevada small businesses to deduct expenses paid for through PPP loans, giving our small business community a lifeline while we weather this storm. We will continue working to support our state’s small business community.”
BACKGROUND: The intent of the Paycheck Protection Program, which was created in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was to maximize small businesses’ ability to maintain liquidity, retain their employees, and recover from the pandemic as soon as possible. Last Thursday, the IRS issued a notice stating that small businesses will not be able to deduct these business expenses from their taxes.
The Small Business Expense Protection Act is supported by the American Institute of Certified Public Accountants (AICPA).