Since the CARES Act passed in late March Congress has been silent. Now the Congress is starting to work on a new phase of legislation and potentially clean up some of the issues that came out of the CARES Act. All of these are just proposals, but it will give you an idea of what kind of stuff might be coming in the next few weeks. We will continue to monitor what’s going on and if substantial legislation is passed we will have another webinar on it.
- One proposal calls for businesses to be able to deduct the costs that are used towards the PPP loan forgiveness. This is directed at undoing what the IRS said and we wrote about here /coronavirus-updates/ppp-loan-forgiveness-and-deductibility/
- Proposed legislation in the House called the HEROES Act is 1800+ pages long and it covers a wide variety of topics. Many are expanded tax credits or stimulus measures to get cash into the hands of people quickly.
- Smaller proposals address the critical 8 week timeframe for loan forgiveness on PPP loans. A bunch of suggestions have arisen to increase the flexibility for the 8 week period, or the use of funds, or the forgiveness of the loans. Congress understands that for many businesses, but especially a business that is closed during their 8 week period, the guidance should be expanded and extended to provide the business with the best chance to succeed long term
I don’t know what legislation will pass, or what legislation will be introduced tomorrow, but we are starting to see movement and ideas coming through Congress and we will be here to explain it once they do pass something. Contact Chris Wittich, CPA, MBT at firstname.lastname@example.org for additional guidance.