Dec. 21, 2020—A new coronavirus relief bill approved by Congress extends the Payment Protection Program and clarifies how business owners can deduct expenses related to those funds.
Members of Congress reached a deal on a $900 billion economic relief package on Dec. 20, reports the Associated Press. Part of the package is a $284 billion extension of the PPP. This round of loans offers forgiveness to companies with fewer than 500 employees, reports Bloomberg.
The bill also clarified tax write-offs for PPP-related expenses. Business owners can deduct expenses paid with forgiven PPP loans, legislators determined.
The relief package also included a boost to unemployment insurance and direct payments to taxpayers.
This original story said that Congress had passed the bill on Dec. 20. Congressional negotiators had just reached an agreement on terms by that date.