Most small businesses in Virginia will be spared any tax burden at a difficult time
RICHMOND (Feb. 27, 2021) – Today, the Virginia Legislature voted to approve a compromise between the House and Senate that allows small businesses to deduct up to $100,000 on state taxes for costs related to taking Paycheck Protection Program loans. NFIB, an association with thousands of small business members in Virginia, is grateful to lawmakers for choosing the higher cap on deductions originally passed by the Senate, that will prevent most small businesses in the state from incurring any tax burden.
The following comments are attributable to NFIB’s State Director in Virginia Nicole Riley:
“While small business owners wanted to receive the full federal tax benefit afforded by Congress, they appreciate the efforts the General Assembly made to reach this agreement on the state level. The $100,000 deduction will provide significant and immediate relief to over 80% of PPP and Rebuild Virginia recipients.
“Over 93,000 small businesses in Virginia who kept their employees paid even when the government shut them down and they suffered significant losses, will be able to receive this relief. Hopefully, avoiding a big tax bill will help them get past the economic crisis.
“A big concern hanging over business owners was the pending tax deadline, but now with this compromise legislation, lawmakers have lowered the stress level, and that process will be less complicated.”