SALT LAKE CITY (ABC4) – Utah House Democrats say they are drafting legislation to give some small business owners “needed tax relief.”
A Thursday morning statement said tax relief legislation will apply to loans made to small businesses in Utah under the federal paycheck protection program.
“Although Congress has exempted the canceled P3 loans from federal income tax, Utah currently plans to treat the canceled loans as taxable income,” House Democrats said. “This means that many small business owners who have taken P3 loans to keep their businesses open during the pandemic are at the mercy of thousands of dollars in taxes owed to the state. “
Representative Suzanne Harrison (D-Draper) says this legislation is important for small businesses in Utah.
“Small business owners are the backbone of our state’s economy,” she explains. “With the fiscal position of our state seems relatively solid compared to other states, we should support our struggling small businesses as much as possible. This legislation will give the many small family businesses that survived the economic downturn a well-deserved boost. ”
The bill will be made public and introduced this week.
On Monday, President Joe Biden announced changes that would target more federal assistance in the event of a pandemic to the country’s smallest businesses and businesses owned by women and people of color.
Biden says a lot mom-and-pop companies “have muscle” by big business looking for federal funds at the start of the pandemic. He said the changes taking effect on Wednesday would bring long-awaited help to those small businesses he said are “crushed” by the economic downturn caused by the pandemic.
“America’s small businesses are hurting, hurting a lot, and they need help now.”