NFIB State Director Annie Spilman released the following statement today in response to House passage of HB 1195, legislation that would let Texas small business deduct forgiven expenses paid for with federal Paycheck Protection loans from their gross receipts taxes:
“The federal COVID-19 recovery act signed into law in December lets employers deduct these expenses on their federal income taxes, but Texas law doesn’t, and that’s not fair to the small businesses that took the PPP loan to keep Texans on payroll.
“HB 1195 would save Texas businesses 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 could invest more in their businesses and afford to give employers higher wages and better benefits.
“Small businesses accepted PPP loans to keep the doors open and keep people working. Having to pay taxes on these forgivable loans could be the final nail in the coffin for many small businesses. We applaud the House for passing HB 1195 unanimously and hope the Senate will provide needed certainty and stability for small businesses and their workers by passing HB 1195 as soon as possible.”