Skip to content

NC Small Businesses Would Lose Millions of Dollars Without COVID-19 Deduction

NC Small Businesses Would Lose Millions of Dollars Without COVID-19 Deduction

March 17, 2021 Last Edit: June 5, 2025

NC Small Businesses Would Lose Millions of Dollars Without COVID-19 Deduction

NFIB State Director Gregg Thompson says small business owners stand to lose millions of dollars unless the General Assembly votes to let them deduct forgiven expenses paid for with federal Paycheck Protection Program (PPP) loans on their state income taxes.

“Small business owners can deduct these expenses on their federal income taxes, but they can’t deduct them on their state taxes, and that’s not fair,” Thompson said.

In the state Senate, SB104 would change North Carolina’s tax code so employers can deduct those COVID-19-related expenses. However, some members of the House want to pass legislation that would do just the opposite and prohibit employers from deducting those expenses on their North Carolina taxes. 

“Our members understand that the pandemic has really had an impact on the state’s economy, and that’s put a dent in tax collections, but taxing the federal loans that allowed small businesses to avoid closing and throwing people out of work isn’t the solution,” Thompson said.

“Small businesses are especially vulnerable right now,” Thompson said. “That’s why our members are asking their legislators to vote ‘yes’ when it comes to deducting costs associated with staying open and keeping people employed during these difficult times.”

“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.

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

June 30, 2025
Get Tips on Website ADA Compliance on the Small Business Rundow…
The Small Business Rundown talks website ADA compliance, the Small Business…
Read More
June 30, 2025
Reminder: Important Tax Changes Went into Effect on July 1
Income, sales & use, and the new “tech tax” are impacted
Read More
Small Business Owner Calculates Taxes Finance Expensive Inventory Inflation Cost
June 30, 2025
Florida’s Small Business Community Celebrates Tax Package Bec…
Governor DeSantis signed legislation eliminating the business rent tax
Read More
United States Capitol East Facade at angle
June 28, 2025
NFIB Key Votes the One Big Beautiful Bill Act in U.S. Senate
NFIB sent a letter to the U.S. Senate naming the One Big Beautiful Bill Act…
Read More

© 2001 - 2025 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility