News from the GCVCC Business Legislative Advocacy Committee
The Greater Coachella Valley Chamber of Commerce (GCVCC) is requesting you work with your respective legislative bodies to help alleviate an unnecessary tax burden being placed on local small businesses during this time of financial crises. The tax burden stems from language found within Assembly Bill 1577, passed and signed into law on September 9, 2020, which is now out of line with amended federal tax policy.
The Consolidated Appropriations Act of 2021 (H.R. 133) which was passed and signed into law on Monday, December 28, 2020, did more than just create additional stimulus checks of $600 and authorize a second round of Paycheck Protection Program (PPP) loans called second draw loans. It reversed the IRS’s position that the expenses incurred with the forgivable PPP funds would not be included as deductible expenses on the business’s 2020 income tax return. The intent of the original CARES Act funding was to create stimulus in the form of forgivable loans. By passing H.R. 133 and clarifying that businesses can in fact take the expense deductions attributable to the PPP funding, the PPP loans become the tax-free stimulus they were intended to be.