NLBMDA and NRLA want PPP tax deduction action
The IRS has issued guidance that says expenses related to PPP loans are not tax-deductible.
In a joint statement issued by the National Lumber and Building Material Dealers Association (NLBMDA) and the Northeaster Retail Lumber Association (NRLA), the organizations are calling for Congress to preserve Paycheck Protection Program (PPP) loan tax deductions.
The NLBMDA and NRLA said the Internal Revenue Service (IRS) recently issued guidance stating that expenses related to forgivable loans through the PPP will not be tax-deductible for small businesses.
The NRLA and the NLBMDA believe the IRS’s guidance is contrary to Congress’s original intent for these loans and is asking Congress to overturn the guidance in the next COVID-19 relief bill.
The intent of the PPP was to provide a short-term lending vehicle for employers to help keep their employees in place, so that the nation could avoid widespread long-term unemployment with this critical government funding, the associations said.
“The IRS should not undue this goal by changing the rules after so many small businesses took advantage of the program,” the statement reads.
Members can tell their members of Congress to preserve the PPP tax deduction by contacting them here.
In a separate statement, the NLBMDA said that the PPP was created by the CARES Act to provide loans to businesses to keep workers employed during the COVID-19 pandemic.
“Recent statements by Administration officials and some written text have created severe concerns for LBM dealers across the U.S., specifically with certification and liquidity requirements that appear different than when PPP was created,” the NLBMDA said, noting that the May 7 safe harbor date is simply not sufficient.
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