On July
1, the National Waste & Recycling Association (NWRA) joined other
associations on a letter to congressional leaders in the
House and Senate urging them to pass the bipartisan Small Business Expense
Protection Act. The legislation would ensure that small businesses can deduct
eligible expenses paid with funds
from the Paycheck Protection Program (PPP).
The
legislation is in response to an interpretation from the Internal Revenue
Service (IRS) that states that expenses that would normally be deductible will
not be so if the business pays the expense with PPP funds.
NWRA says
it believes the IRS decision is contrary to what Congress intended when it
passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“The PPP is an essential lifeline for small-business owners as they deal with mandated shutdowns or slowdowns from different levels of government. The impact of the IRS interpretation is significant. The effect will be to substantially increase the tax liability of PPP loan recipients at the worst possible time,” NWRA President and CEO Darrell Smith says. “We urge congressional leaders to do the right thing and pass this legislation quickly so the president can sign it into law.”