The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act is largely related to the extension and enhancement of the popular Paycheck Protection Program. The significant majority of this section of the act does not have a direct tax effect. However, because the PPP does provide for the exclusion from income of forgiven PPP loans, it does have a tangential effect and is worth noting the existence of the extension. However, the PPP itself is beyond the scope of this Wolters Kluwer Briefing.
This section of the act does not contain the allowance of a business expense deduction where the expenses were paid for with forgiven PPP loans. That was contained in the COVID-19-Related Tax Relief Act and is discussed above.