Air Conditioning Contractors of America Opposes IRS Taxation of Payroll Protection Program Funds
Encourages HVAC contractors to send letters to their congressmen
ARLINGTON, Va. — The Air Conditioning Contractors of America (ACCA) announced that Barton James, ACCA president and CEO, sent a letter to Chairman Richard Neal (D-MA) and Ranking Member Kevin Brady (R-TX) of the House Ways and Means Committee, as well as Senators John Thune (R-SD) and Mark Warner (D-VA), Chair and Ranking Member (respectively) of the Senate Subcommittee on taxation and an IRS oversight about a recent IRS ruling regarding the Payroll Protection Program (PPP).
The recent ruling by the IRS would require participants to pay taxes on any expenses that are paid for by PPP funds, resulting in loan forgiveness that would otherwise be deductible. ACCA believes that this ruling effectively makes PPP funds taxable income and mitigates much of the economic relief that the CARES Act was designed to deliver.