Dec. 21, 2020—A new coronavirus relief bill passed by Congress extends the Payment Protection Program and clarifies how business owners can deduct expenses related to those funds.
Members of Congress reached a deal on a $900 billion economic relief package on Dec. 20, reports the Associated Press. Part of the package is a $284 billion extension of the PPP. This round of loans offers forgiveness to companies with fewer than 500 employees, reports Bloomberg.
The bill also clarified tax write-offs for PPP-related expenses. Business owners can deduct expenses paid with forgiven PPP loans, legislators determined.
The relief package also included a boost of unemployment insurance and direct payments to taxpayers.
