Yes, clearly being able to claim a deduction on money the government gives you is somehow not a loophole because of things unrelated to its flagrant loophole-ness.
You keep calling it a loophole as if you say it enough times, it becomes morally justifiable to do what the government is doing.
It's not a loophole, it was put in by purpose.
And whether you agree or disagree with the situation, it is a huge fucking hit to businesses (i.e. JOB CREATORS) to remove such a huge tax break this quickly in a shit economy.