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Monday, March 15, 2021

Bill aimed at assisting struggling small businesses passes the Senate

Rep. Adam Koenig is a co-sponsor of HB 278.

BisbeCapital.com

The Senate passed legislation sponsored by Representative Patrick Flannery that would allow Kentucky businesses who received Paycheck Protection Program (PPP) loans to deduct expenses paid with loan monies from their taxes. The measure, HB 278, conforms Kentucky law with federal tax law and passed unanimously. 
 
“I am grateful to my colleagues in the Senate for passing this critical piece of legislation. The PPP loan program was designed to help keep small businesses open and operational during the COVID-19 pandemic,” said Flannery, who is serving his first term representing Carter and Lawrence counties. “We must do everything we can to support our small businesses because they are essential to economic growth and prosperity across the Commonwealth.”
 
The U.S. Small Business Administration implemented the $669-billion business program that was established by the 2020 U.S. Federal CARES Act. The goal is to help individual businesses, self-employed workers, sole proprietors, specific nonprofit organizations, and tribal enterprises continue paying their workers. It allows entities to apply for low-interest private loans to pay for their payroll and certain other costs.
 
HB 278 will help struggling small businesses and the self-employed by offering tax relief on state tax filings for entities who received federal PPP loans. This legislation would conform Kentucky law to existing federal statutes created by The Heroes Act. 
 
Kentuckians have received $5.3 billion in PPP loans to keep businesses operational. 
 
HB 278 was amended to pass with an emergency clause and passed the House by concurring with the Senate change. The measure will now head to the Governor’s desk for his consideration.  

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