NFIB State Director Gregg Thompson says small business owners are concerned about HB196, a $1.7 billion COVID-19 relief bill he says could do more to help North Carolina’s small businesses.
“It’s a step in the right direction, but it doesn’t do enough to help the employers who have really taken a beating during the pandemic,” Thompson said.
“We surveyed our North Carolina members in January, and 87.5% wanted the General Assembly to bring North Carolina’s tax code in line with federal law so they can deduct forgiven COVID-19-related expenses on their state income taxes,” he said. The federal COVID-19 recovery act signed into law in December reversed an IRS ruling and said the federal Paycheck Protection Program (PPP) forgiven expenses are deductible.
“This past year has been really rough on small, family-owned businesses,” Thompson said. “Some didn’t make it, and 15% of small businesses surveyed earlier this year by the NFIB Research Center thought they’d have to close within six months unless economic conditions improve soon.
“Letting small businesses deduct PPP forgiven expenses on their state taxes would ease some of the financial pressure on these businesses and help them survive this ordeal,” Thompson said.
