Skip to content

UI and PPP Tax Relief Becoming a Reality

UI and PPP Tax Relief Becoming a Reality

March 17, 2021 Last Edit: June 5, 2025

UI and PPP Tax Relief Becoming a Reality

The Massachusetts House voted 155-0 to advance legislation that would freeze unemployment insurance rates and prevent PPP loans from being taxed by the state. House Bill No. 89 now moves to the Senate and is expected to be voted on Thursday, March 18th.

House Bill No. 89 bill will do the following:

  • Freezes unemployment insurance taxes at schedule E for two years (2021 and 2022) preventing a 60% increase in UI taxes. It also authorizes the state to issue bonds to repay federal advances in UI funding so the state can take advantage of lower rates. This means a far smaller increase in UI taxes than the 60% increase that was projected to occur if no action was taken.
  • Prevents forgiven PPP loans from being taxed by the state of Massachusetts. Presently, businesses that file as pass-through entities for tax purposes would face state taxes on their forgiven loan amounts.
  • Mandates paid emergency leave for all workers. This bill ensures all workers in Massachusetts have access to upwards of 40 hours of paid emergency leave for COVID-related reasons. Employers with fewer than 500 workers would be eligible for federal tax credits to cover the cost of the paid leave. Businesses with more than 500 workers will have access to a state fund for reimbursement.

This bill passed the House unanimously (155-0) and is expected to go before the Massachusetts Senate for a vote on March 18th. NFIB first raised both the PPP loan and UI tax issue to lawmakers last Fall and worked with lawmakers to move these bills quickly. On Monday, testimony was provided in a Senate Ways and Means hearing reaffirming our support for the tax relief and raising concerns over the emergency leave, while also stressing the need for additional unemployment insurance tax reform.     

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

United States Capitol Building Wide Shot
July 3, 2025
NFIB Thanks Congress for Passing Landmark Small Business Tax Re…
NFIB applauds Congress for passing the One Big Beautiful Bill Act, which in…
Read More
July 2, 2025
NFIB Key Votes One Big Beautiful Bill Act in U.S. Senate and Ho…
NFIB key votes the One Big Beautiful Bill Act in the 119th Congress and urg…
Read More
July 2, 2025
Small Business Owners Push Priorities in Capitol Hill Meetings
Over 80 small business owners attended NFIB’s annual Fly-In. They attende…
Read More
East Front of United States Capitol
July 2, 2025
NFIB Key Votes Final Passage of the One Big Beautiful Bill Act…
NFIB designated H.R. 1, the One Big Beautiful Bill Act as adopted by the U….
Read More

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