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 the federal Paycheck Protection Program (PPP) loans on their state income taxes.
“Small businesses can deduct these expenses on their federal income taxes. House Bill 334 and Senate Bill 112 would let owners deduct these expenses on their state income taxes, too,” Thompson said.
“The pandemic has really had a tremendous impact on the state’s economy, and that’s put a big dent in tax collections, but taxing the federal loans that allowed small businesses to avoid closing and putting people out of work isn’t the answer,” Thompson said.
“Small businesses are in a precarious situation right now,” Thompson said. “Thirteen percent of owners nationwide say they are in danger of closing for good unless economic conditions improve over the next six months.
“Letting small businesses deduct PPP forgiven expenses on their state taxes would ease the financial pressure on these businesses and help local businesses survive,” Thompson said.
Here’s what NFIB member Jeff Hastings of Raleigh says about the deduction: