Virginia’s Republican delegation is encouraging state leaders to allow for full deductibility of Paycheck Protection Program loans in order to ensure the recovery of Virginia small businesses.
Sixth District Congressman Ben Cline joined fellow Virginia Republicans Morgan Griffith, Rob Wittman and Bob Good in writing to Gov. Ralph Northam encouraging him and the General Assembly to fully conform state tax law to the federal government’s recently enacted tax law to allow for full deductibility of PPP loans.
As part of the Consolidated Appropriations Act passed last year, Congress provided for the full deductibility of necessary business expenses that were paid with a forgiven or forgivable PPP loan.
The General Assembly is currently considering whether to conform Virginia state tax law to that of the federal government, and at what level the state will allow for the deductibility of forgiven or forgivable PPP loans.
“The Paycheck Protection Program has served as a lifeline to more than 100,000 Virginia small businesses and their employees since the pandemic began,” Cline said. “Congress made its intent clear that these loans were to be forgiven and fully deductible due to COVID-19, and now it is time for Governor Northam and the General Assembly to do their part and support mom and pop shops across the Commonwealth. Failing to conform state tax law with that of the federal government would stick those most in need with a sizable tax bill they did not expect and cannot afford. I am confident those serving in Richmond will do the right thing.”
The full letter can be found here.
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Chris Graham
