Congress has cleared the way for President Trump’s expected signature another pandemic relief package totaling $900 billion in response to increasing concerns about the adverse impacts of the resurgence of COVID cases across the country. We have prepared a summary of the key provisions of interest to dealers and dealership employees. In particular, the stimulus legislation clarifies that expenses paid for using Paycheck Protection Program (PPP) loan proceeds are deductible even when the loan is forgiven. NADA had strongly urged Congress to restore the full deductibility of such expenses for all PPP recipients before the end of the year.
For the past few months, and more urgently in the last several days as leadership finalized the bill, NADA engaged through coalitions as well as directly with members and staff in support of provisions that enable dealers to retain working capital and keep people on the payroll. The continued health of the dealer body is essential for a broad-based economic recovery and a key driver of state and local tax revenue.