SALT LAKE CITY (ABC4) – Utah House Democrats say they are crafting legislation to give certain small business owners ” a needed tax break.”
A Thursday morning release says the tax break legislation will apply to loans Utah small businesses received under the Federal Paycheck Protection Program.
“Although Congress exempted forgiven PPP loans from federal income taxation, Utah currently plans to treat the forgiven loans as taxable income,” House Democrats say. “This means many small business owners who accepted PPP loans to keep their businesses open during the pandemic are on the hook for thousands of dollars in taxes owed to the state.”
Representative Suzanne Harrison (D-Draper) says this legislation is important for Utah’s small businesses.
“Small business owners are the backbone of our state’s economy,” she explains. “With our state’s budget situation looking relatively strong compared to other states, we should be supporting our small and struggling businesses as much as possible. This legislation will give the many small mom-and-pop businesses who weathered the economic downturn a much-deserved boost.”
The bill will be made public and introduced sometime this week.
On Monday, President Joe Biden announced changes that would target more federal pandemic assistance to the nation’s smallest businesses and ventures owned by women and people of color.
Biden says a lot of these mom-and-pop businesses “got muscled out of the way” by larger businesses seeking federal money in the early days of the pandemic. He said changes taking effect Wednesday will provide long overdue aid to these smaller enterprises that he says are being “crushed” by the pandemic-driven economic downturn.
“America’s small businesses are hurting, hurting badly and they need help now.”