WASHINGTON, DC - Today, Ways and Means Committee Chairman Richard E. Neal (D-MA) released the following statement regarding new guidance the Internal Revenue Service (IRS) issued yesterday allowing for the deductibility of expenses paid for with a Paycheck Protection Program (PPP) loan:
“I’m relieved that the IRS reversed its previous position and issued this new guidance, which is in line with Congress’s intent when creating the loan program in the CARES Act. I’d previously called for the Trump Administration to make this change.pdf) back in May of last year, and I’m glad struggling small businesses will get this relief. As the COVID recession continues, these employers and drivers of local economies need all the support Congress intended they receive. It’s critical that small businesses have the necessary resources to survive the pandemic, keep folks on payroll, and eventually safely resume operations. We can’t afford to lose these fixtures of our communities."
