The Treasury Department and the Internal Revenue Service issued a new guidance on January 4, 2021. The recent Revenue Ruling 2021-2 allows deductions of eligible expenses for loans taken under the Paycheck Protection Program (PPP).
Information regarding the eligibility of expense deductions is available in the IRS publication IR-2021-04
Recently passed the Consolidated Appropriations Act, 2021, (H.R. 133) provides $284 billion for a revised Paycheck Protection Program (PPP). It also clarifies that businesses can claim tax deductions for otherwise deductible expenses paid with the proceeds of a PPP loan.