Are Paycheck Protection Loan (PPP) Expenses Deductible?

What the government gives you it can also take away. The IRS has come out with notice 2020-32 saying that PPP expenses such as payroll costs, qualified mortgage interest, rent and utilities are not tax deductible if the PPP loan is forgiven because the forgiveness is tax free income and they want to prevent a double tax benefit. I believe Congress intended the expenses to be deductible and 5 senators filed a bill on May 5 to make it so. Presently negotiations are going on between the senators and the IRS to withdraw notice 2020-32. We will see what happens.