PPP Deductibility Fix on the Horizon
Discussions regarding additional COVID- 19 spending have resumed amongst lawmakers for the first time since the election. A deal could very well be on the horizon, especially given the funding deadline attached to the bill, which is December 11. We must keep in mind that a stopgap could allow for extended negotiations, but all signs point to all parties wanting to reach an agreement.
House speaker Nancy Pelosi (D-CA) says she is pleased with the tone of the conversations but explains that there is some conflict to work through in regard to the starting point for reaching a deal. Elements being considered include 1.) a package over $900 billion that would fund certain programs through March 2021. This option would provide $160 billion in state and local funding as well as Paycheck Protection Program deductibility. 2.) a proposal to extend pandemic unemployment programs for one month and extend a second round of Paycheck Protection Loans. This proposal, which comes from Senate Majority Leader Mitch McConnell (R-KY) also provides additional emergency health funds and tax provisions including a 100% business meals deduction. The Senate plan also includes Paycheck Protection Program deductibility.
Holbrook & Manter is monitoring this situation closely. We will keep you informed of any further developments and will be ready to immediately assist you when a deal is reached, and we know more. In the meantime, please reach out to us with any questions or concerns you may have.