National Federation of Independent Business (NFIB)in Virginia, applauds the State Legislature for implementing important small business legislation. The emergency legislation takes effect immediately and allows Virginia small business owners who took out Paycheck Protection Program (PPP) and Rebuild Virginia loans to exclude the forgiven loan amount from their income as well as up to $100,000 in business expense deductions.
The bill will save small business owners over $100 million in taxes by conforming Virginia’s state tax codes with the federal tax code to reflect changes that Congress made in their COVID-19 emergency packages.
“This legislation is a big win for small business owners,” said Nicole Riley, NFIB State Director in Virginia. “Many of our small business owners who took out Paycheck Protection Program or Rebuild Virginia loans are still struggling to recover from the COVID-19 pandemic. They shouldn’t have to pay state taxes on money they used to pay their employees and keep their doors open. This legislation was the right thing to do – it will help keep our small business owners focused on what they do best: creating jobs that keep Virginia’s economy running.”
The Virginia Department of Taxation just released a set of guidelines that will help CPA’s advise small business owners on how to file their 2020 taxes. You can find that guidance here.