Small Business Expense Protection Act of 2020

Small Business Expense Protection Act of 2020

This bill amends the Coronavirus Aid, Relief, and Economic Security Act to provide that tax deductions for ordinary business expenses and other tax incidents shall not be affected by the exclusion from gross income of amounts related to loan forgiveness received in response to COVID-19 (i.e., coronavirus disease 2019).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3612 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3612

   To clarify for purposes of the Internal Revenue Code of 1986 that 
receipt of coronavirus assistance does not affect the tax treatment of 
                      ordinary business expenses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 5, 2020

 Mr. Cornyn (for himself, Mr. Grassley, Mr. Wyden, Mr. Rubio, and Mr. 
    Carper) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To clarify for purposes of the Internal Revenue Code of 1986 that 
receipt of coronavirus assistance does not affect the tax treatment of 
                      ordinary business expenses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Expense Protection 
Act of 2020''.

SEC. 2. CLARIFICATION OF TREATMENT OF BUSINESS EXPENSES.

    (a) In General.--Subsection (i) of section 1106 of the CARES Act 
(Public Law 116-136) is amended--
            (1) by striking ``1986, any amount'' and inserting ``1986--
            ``(1) any amount'',
            (2) by striking the period at the end and inserting ``, 
        and'', and
            (3) by adding at the end the following new paragraph:
            ``(2) no deduction shall be denied or reduced, no tax 
        attribute shall be reduced, and no basis increase shall be 
        denied, by reason of the exclusion from gross income provided 
        by paragraph (1).''.
    (b) Effective Date.--The amendments made by this section shall 
apply as if included in the enactment of section 1106 of the CARES Act 
(Public Law 116-136).
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