NFIB State Director Rosemary Elebash said small business owners are urging the House Ways and Means-Education Committee to pass legislation that would let them deduct forgiven expenses paid for with federal Paycheck Protection Program (PPP) loans on their state income taxes.
“The federal COVID-19 recovery act signed into law in December said employers can deduct these expenses on their federal income taxes,” Elebash said. “If the legislature lets small businesses deduct these same expenses on their state income taxes, it’ll save employers millions of dollars and go a long way toward helping them recover from the economic downturn brought about by the pandemic.
“One in four small businesses nationwide surveyed by the NFIB Research Center in December were afraid they’d have to close their doors within six months unless economic conditions improve soon,” Elebash said. “A ‘yes’ vote on this legislation would ease some of the financial pressure on small businesses and help them get through this crisis and keep people employed.”