Businesses Get $100 Billion Tax-Write-off Windfall in Aid Bill
- Bill would override IRS’s denial of expense write-offs
- Move criticized by some as ‘giveaway’ for wealthy owners
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Small business owners who got Paycheck Protection Program loans could qualify for big write-offs from their rescue money, amounting to what Treasury Secretary Steven Mnuchin has called a tax-break “double dip.”
The Covid-19 relief package set for a vote in Congress would clarify that business owners can deduct expenses paid for with PPP loans, which can be forgiven by the government without incurring a tax. The deduction benefit could generate more than $100 billion in tax savings for business owners, according to Brookings Institution estimates.