1. Short title
This Act may be cited as the “Fixing the Income Ramifications for Small Businesses and Tax Relief Act” or the “FIRST Act”.
Fixing the Income Ramifications for Small Businesses and Tax Relief Act
A BILL
To clarify for purposes of the Internal Revenue Code of 1986 that receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses.
2. Clarification of treatment of business expenses
In general— Subsection (i) of section 1106 of the CARES Act (Public Law 116–136) is amended—
by striking “1986, any amount” and inserting “1986—
“(1) any amount”
by striking the period at the end and inserting “, and”; and
by adding at the end the following new paragraph:
“(2) no deduction shall be denied or reduced, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1).”
Effective date— The amendments made by this section shall apply as if included in the enactment of section 1106 of the CARES Act (Public Law 116–136).