The National Federation of Independent Businesses (NFIB) in Virginia applauds the state legislature for the implementation of important small business legislation. Emergency legislation comes into effect immediately and allows small business owners in Virginia who have taken out the Paycheck Protection Program (P3) and Rebuild Virginia Loans to exclude the canceled loan amount from their income as well as up to $ 100,000 in deductions for business expenses.
The bill will save small business owners more than $ 100 million in taxes by bringing the state of Virginia tax codes into line with the federal tax code to reflect changes made by Congress in their emergency kits COVID-19.
“This legislation is a big victory for small business owners,” said Nicole Riley, state director of the NFIB in Virginia. “Many of our small business owners who have signed up for the Rebuild Virginia Paycheck or Loan Protection Program are still struggling to recover from the COVID-19 pandemic. They shouldn’t have to pay taxes on the money they used to pay their employees and keep their doors open. This legislation was the right thing to do – it will help our small business owners stay focused on what they do best: creating jobs that keep Virginia’s economy running.
The Virginia Department of Taxation has just released a set of guidelines that will help CPAs advise small business owners on how to file their 2020 taxes. You can find this guidance here.