NFIB State Director Annie Spilman released the following statement today in response to Gov. Greg Abbott signing of House Bill 1195, legislation that allows Texas small businesses to deduct forgiven expenses paid for with federal Paycheck Protection loans from their gross receipts taxes:
“HB 1195 is going to save small businesses throughout the state millions of dollars in taxes and help Main Street businesses recover from the economic downturn brought about by the pandemic. With the money they save, owners can invest more in their businesses and afford to give employers higher wages and better benefits.
“The federal COVID-19 recovery act signed into law in December let employers deduct these expenses on their federal income taxes, but Texas law didn’t, and that wasn’t fair to the small businesses that took the PPP loan to keep Texans on the payroll.
“House Bill 1195 fixes that and will do a lot to help small businesses recover sooner from the COVID-19 downturn. On behalf of our small business members, I want to thank the Texas Legislature for passing HB 1195 and Governor Abbott for signing it into law.”
