Cornyn Pushing for PPP Tax Deductibility:
Today, Senators are trying to move on a bill that would allow businesses to deduct expenses covered by Paycheck Protection Program loans. While any final decisions on the PPP deduction issue is probably a ways off, Sen. John Cornyn (R-Texas), who has sponsored a measure (S.3612) is looking to push the issue before Senators leave town today. ABC has advocated for passage of this bill into law.
Cornyn, a senior Finance Committee member, said that he hoped to get unanimous consent in the Senate this week for the measure to allow companies to deduct expenses paid for by PPP loans. However, this move would require the lifting of any remaining holds on the bill by today. Both Finance Chair Chuck Grassley (R-Iowa) and Ranking Member Sen. Ron Wyden (D-Ore) are sponsors of the PPP deduction bill, and also argue that Congress intended to allow businesses to benefit both from the loans and the tax write-offs to boost the economy.
Getting a measure passed in the Senate by unanimous consent would be a show of force, but any final decision on the PPP deduction issue would also need to get the House and the administration on board. U.S. Treasury Secretary Steve Mnuchin has said that allowing companies to write off expenses bought with PPP loans would be double dipping — backing the IRS, which disallowed those deductions.
New PPP Interim Final Rule:
Today, the SBA and Treasury issued a new IFR for the Paycheck Protection Program addressing changes to the program under the PPP Flexibility Act that was signed into law. In the IFR, SBA confirms it will allow partial PPP loan forgiveness if a borrower spends less than 60 percent on payroll. View full IFR here.
ABC and Dozens of Organizations Urge Liability Protections for Businesses:
Last month, ABC joined with dozens of organizations in a letter to congress urging temporary and targeted liability relief legislation related to the COVID-19 pandemic. Sen. Cornyn, who is leading on drafting the legislation with Senate Majority Leader Mitch McConnell, said Wednesday that the liability proposal will likely be released next month. Senate and House Republicans have called the liability protections a “red line” for any additional relief legislation. You can also view an updated version of the Coalition letter that includes a number of additional signatories.
June 9 Primary Results - Biden Clinches, Winners and Run-offs:
On Tuesday night, Former Vice President Joe Biden clinched the Democratic nomination – winning the Georgia with an 84% victory and West Virginia with 65% - sweeping the state’s combined 133 bound first ballot votes. By all counts now, Mr. Biden has exceeded the minimum 1,991 delegate votes to officially clinch the party nomination.
In Georgia – After the count was delayed due to possible irregularities in the Atlanta area and many reports of long lines and difficulty voting. 2017 GA-06 candidate Jon Ossoff (D) won the Democratic nomination for U.S. Senate on Wednesday with 51% of the vote, narrowly avoiding a run-off. He will face Sen. David Perdue (R) in November. In the competitive House races, Rep. Lucy McBath (D-Marietta) will face a 2018 rematch with former Rep. Karen Handel (R) in the Atlanta suburban 6th District. ABC PAC and the Georgia chapter endorsed Handel prior to the primary. This race finished 50-49% in 2018. The Democratic primary in GA-07 heads to an August 11th run-off, while retired Navy officer and physician Rich McCormick claimed the Republican party’s nomination outright with over 55% of the vote, an impressive total in a field of seven candidates. The general election will again be a toss-up contest in the Fall. Run-offs are also occurring in the safe Republican open 9th and 14th Districts.
In Nevada - Long voting lines and the decision to allow mail ballots to be postmarked on Election Day mean the results of these primaries, most particularly in the 4th Congressional District Republican race to face Rep Steven Horsford (D-Las Vegas), which likely won’t be known for several days. In Nevada’s 4th district, early vote returns give former state Assemblyman Jim Marchant (R) a small early lead over insurance agency owner Sam Peters (R). Former professional wrestler Dan Rodimer (R) has appeared to emerge victorious in Nevada’s 3rd district, posting a ten-point lead over ex-state Treasurer and frequent candidate Dan Schwartz (R) who has conceded - Rodimer will now face freshman Rep. Susie Lee (D).
In South Carolina - State Rep. Nancy Mace (R), despite polling that forecast a toss-up race, easily defeated Mt. Pleasant City Councilwoman Kathy Landing (R) and two other opponents with over 57% of the vote in the very competitive Charleston-based SC-01 district. Ms. Mace will now challenge freshman Democrat Joe Cunningham (D) in a district that is historically Republican.
There were no surprises in the North Dakota and West Virginia races. All incumbents in both states appear secure for re-election. West Virginia Gov. Jim Justice, in his first Republican primary since he was originally elected as a Democrat before switching parties, easily won nomination with more than 63% of the vote against two opponents. Super June countries on June 23rd where voters in Kentucky, Mississippi (state run-off), New York, North Carolina (state run-off), South Carolina (state run-off) and Virginia will head to the polls.