Skip to content

TX House Passes COVID-19 Loan Tax Bill

TX House Passes COVID-19 Loan Tax Bill

April 1, 2021 Last Edit: June 5, 2025

TX House Passes COVID-19 Loan Tax Bill

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.”

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

pottery factory
July 8, 2025
NEW SURVEY: Small Business Optimism Remains Steady in June
Taxes remain small business owners’ single most important problem.
Read More
July 7, 2025
Flood Resources for Central Texas & Hill Country
Texans are urged to remain weather aware as potential heavy rain may contin…
Read More
July 7, 2025
New Op-Ed Highlights Challenge of Political Stalemate for PA Sm…
NFIB’s Greg Moreland wrote about why small businesses need tax reform act…
Read More
July 4, 2025
America’s Small Businesses Applaud President Trump, Congress…
“President Trump and Congress have the gratitude of 33 million American s…
Read More

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