CARW joined a coalition of business trade organizations to advocate for the passage of 2021 Act 1 to protect businesses who received Paycheck Protection Program loans, from unexpected income taxes.
On February 18, Governor Evers signed 2021 Assembly Bill 2 into law as 2021 Act 1 (Act 1). In announcing his decision to sign Assembly Bill 2 on Thursday, Evers stated he was proud to provide $480 million in tax relief for Wisconsin stakeholders. In addition to other provisions, the law allows businesses that received PPP loans to deduct expenses paid for with the forgiven proceeds.
In line with the original intention of Congress, the PPP loans were intended to both not count towards a business’s taxable income, and for expenses to be paid for by those loans to be deductible. However, the Wisconsin Department of Revenue released a guidance document on January 15th, 2021 announcing expenses would not be deductible for Wisconsin income/franchise tax purposes. The passage of Act 1 reversed the guidance from DOR.
WMC (Wisconsin Manufacturers and Commerce) led a coalition urging the legislature to pass a fix to this issue. The legislature did so on an overwhelmingly bipartisan vote.
To learn more, read HERE
Link to legislation HERE