H.R. 6754 - Protecting the Paycheck Protection Program Act of 2020

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.