New Stimulus Legislation Makes PPP-Funded Expenses Deductible and Provides Other Tax Benefits

On December 27, 2020, following an unexpected delay, President Donald Trump signed stimulus legislation that legislatively overruled the IRS’s position that expenses funded with forgiven Paycheck Protection Program (“PPP”) loans were not deductible. The new legislation, known simply as the Consolidated Appropriations Act, 2021 (the “Act”), also expands the scope of the PPP program and enhances other benefits created in the original Coronavirus Aid, Relief, and Economic Security Act (the “CARES...
By: Kelley Drye & Warren LLP

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