What We Know About the PPP Expense Deductibility Bill

Senate leaders remain opposed to adopting the House version of the HB 334, but an alternative proposal is on the horizon. Following the tumultuous back and forth, here is the latest news about the PPP expense deductibility bill.

On Monday, Senate leaders re-referred HB 334 from the Rules Committee to the Finance Committee. Senate Republicans caucused privately on Monday and met again yesterday. The discussion concerned a proposal to provide a grant to businesses that received PPP loans.

Nothing in writing has come to our attention yet. But, we have seen that they are discussing a grant amount equal to 7.5% of the first $250,000 of PPP loans received. Senate sponsors say that they intend for the grant to be automatic. It would not require an amended tax return or even an application. No additional details have been released at this time.

If the caucus endorses the proposal, we expect the Finance Committee to schedule a vote next week. There are many factors that could alter this timeline. One such factor is that the House and Senate still have not reached an agreement on a spending cap for the biennial budget. Senate leaders may also decide to run their tax relief bill, SB 337, ahead of or concurrent with changes to HB 334. (Or incorporate their grant language into the appropriations bill or other legislation).

Stay Tuned!

As soon as we receive legislative language or more details, we will share that information with you. Subscribe to our blog for email updates and never miss another article by clicking here.

Holden Moss CPAs is dedicated to aiding businesses during this difficult time. If you would like more information about your tax returns or other aspects of new legislation, give us a call at (919) 556-6216. Contact us via email at admin@holdenmoss.com. We look forward to working with you.

*Updates and guidance are issued daily. The information above may change.