Congress is on the verge of passing additional COVID relief legislation. ABC needs your help advocating on behalf of hardworking Americans and valued small businesses nationwide in order to safeguard important business operations.

ABC has heard that Congressional leadership could cap the amount of loans eligible for tax deduction under thePaycheck Protection Program. It is critical that Congress ensures the full tax deductibility of these loans for all PPP recipients to best serve our nation’s small construction businesses across the country and support recovery efforts.

The PPP was intended to provide vital, tax-free assistance for certain business costs and Congress specifically included Section 1106(i) in the CARES Act to exclude forgivable loan assistance from taxable income. On April 30, however, the Internal Revenue Service released Notice 2020-32 disallowing the deduction of forgiven expenses.

Addressing this issue ahead of the new year has received bipartisan support over the past months, and ABC has supported critical, bipartisan efforts to protect and support our nation’s businesses and their employees. Key members of the House and Senate have introduced the Small Business Expense Protection Act (S. 3612 /H.R. 6821), which would ensure that small businesses can fully deduct expenses paid with a forgiven PPP loan from their taxes. This bill has 41 bipartisan cosponsors in the Senate and 72 in the House.

ABC urges members to contact their members of Congress and urge them to include the bipartisan language of the Small Business Expense Protection Act in the COVID relief deal. This will support our nation’s small businesses and prevent a significant tax increase as they work to maintain their businesses and provide jobs for so many who continue to struggle through this national health crisis.