In a letter to legislators on Capitol Hill, the National Electrical Manufacturers Representatives Association (NEMRA), Indianapolis, IN, along with NAED and NECA, voiced their support of legislation before the end of the year that would include a technical correction addressing the tax treatment of loan forgiveness under the Paycheck Protection Program (PPP).
NEMRA, the National Association of Electrical Distributors, National Electrical Contractors Association, and several dozen other trade organizations signed a letter to Congressional leaders earlier this month that said in part, “At the onset of the COVID-19 pandemic, Congress responded with speed, cooperation, and an eye to preventing the worst potential economic outcomes. We ask that you bring that same spirit of urgency and cooperation before the end of this session to prevent an avoidable catastrophe for millions of small businesses that, without Congressional action, will face a surprising, and, in many cases, insurmountable tax bill next year. One of the most effective economic relief measures for our members was the PPP, passed as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.”
The letter said one issue with the current tax treatment of the PPP loans is an IRS ruling that would “transform a tax-free loan forgiveness into taxable income, raising the specter of a surprise tax increase of up to 37% on small businesses when they file their taxes for 2020.”
Click on the green box below to read the letter from NEMRA, NAED, NECA and the other trade associations.
