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Lane Keeter, CPA

Partner: Tax Consulting, Estate Planning, and Heber Springs Managing Partner

Consolidated Appropriations Act (PPP 2)

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I wanted to let you know about a new law that was signed by the President into law last night. It is the Consolidated Appropriations Act, commonly known by many people as the PPP 2. It's a COVID19 economic stimulus and relief law that Congress overwhelmingly passed about a week ago and the President signed into law last night. Now there's a lot to this. This bill is an almost 5,600-page behemoth of a bill, but some of the more important elements that you are going to want to know about are:

Probably on most people's minds, especially small businesses is a second round of Paycheck Protection Program forgivable loans more PPP loans becoming available. Now it's not going to be available to all businesses that it was available to before but more precisely targeted at businesses and organizations that have had a significant revenue loss. Although more types of organizations are going to qualify as well.

Another important aspect of this law is that it addresses the question of deductibility of the expenses paid for using the PPP loans. That was in question because the IRS had said they were not deductible. This law makes it clear that they are. This law also extends unemployment relief for many people who have lost their jobs, it provides for another round of economic stimulus payments going out to individuals, as well as many temporary tax provisions that were expiring or have expired have now been extended either for a year or a period of several years. 

You can see more details right now more details on an article that's posted on our website as well as social media.

We will be posting more information as we have it.

Additional Reading: COVID-19 Relief Bill to Provide Additional Pandemic Aid

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