When the Paycheck Protection Program (PPP) was adopted as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, Congress made clear that any loan forgiveness under the program would be excluded from the borrower’s taxable income. Congress intended for the loan forgiveness under PPP to be tax-free. However, the IRS Notice 2020-32 reverses that position and eliminates any benefit.  GCCA has joined in a food industry coalition to request that Congress include a technical correction addressing this tax treatment of loan forgiveness under the Paycheck Protection Program (PPP) during the next round of COVID relief.

Read our full statement.