Small business owners across the Commonwealth are more confident today after learning that Gov. Glenn Youngkin has now signed HB 971 into law, a bill that would conform Virginia’s tax code to the federal Internal Revenue Code. The bill expands Paycheck Protection Program loans and Rebuild Virginia grants to make sure that the COVID-19 aid that was granted to our struggling small business owners are not treated as taxable income.

This move would help thousands of struggling small businesses across the state that have been impacted by the COVID-19 pandemic. According to the latest NFIB survey, nearly half of small business owners reported supply chain issues have a significant impact, 23% are experiencing significant staffing shortages and another 64% have increased their average selling prices.

“The message from small business owners is clear: nearly three years after the pandemic hit our members, they are still suffering from crippling consequences thanks to previous mandates and shutdowns,” said Julia Hammond, NFIB State Director in Virginia. “What our hard-working entrepreneurs need now is a reliable tax code and stability in these uncertain times. NFIB members are thankful that our new governor understands their problems. They look forward to seeing what other measures the legislature can accomplish this session to assure small business owners they acknowledge the importance of small business to the state’s economy.”

Tax relief is one of the four pillars that small business owners are asking legislators to act upon this legislative session. Tax relief measures like HB 971 will provide tax relief for small businesses so they can recover faster, keep and hire employees, and bolster their communities.