Skip to content

Allow KY Small Business to Deduct Expenses Paid with COVID-19 Loans

Allow KY Small Business to Deduct Expenses Paid with COVID-19 Loans

January 11, 2021 Last Edit: June 5, 2025

Allow KY Small Business to Deduct Expenses Paid with COVID-19 Loans

NFIB State Director Tom Underwood said today that small businesses across the commonwealth are calling on lawmakers to pass a measure allowing them to deduct forgiven expenses paid for with federal Paycheck Protection Program (PPP) loans on their Kentucky income taxes.

“You’re allowed to deduct these expenses on your federal income taxes, but Kentucky says you can’t deduct them on your state taxes, and that’s not fair,” Underwood said. The federal COVID-19 recovery act signed into law last month reversed an IRS ruling and clarified that PPP forgiven expenses are deductible.

“The pandemic has taken a tremendous toll on Kentucky’s small businesses, and a lot of them are barely hanging on,” Underwood said. One in four small businesses nationwide surveyed last month by the NFIB Research Center warned they would have to close within six months unless economic conditions improve soon.

“We need the General Assembly to relieve some of the financial pressure bearing down on them by allowing them to deduct costs associated with staying open and keeping people employed during the pandemic,” Underwood said.

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

July 10, 2025
Historic Legislation Becomes Law and Stops Massive Tax Hike on…
The One Big Beautiful Bill Act is signed into law, permanently extending th…
Read More
July 10, 2025
LISTEN: NFIB LA Director Talks Insurance Reform, Tax Relief, an…
Leah Long legislation making the 20% Small Business Deduction permanent was…
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