Evers signs bill cutting taxes for businesses that took PPP loans
MADISON, Wis. (AP) — Gov. Tony Evers has signed into law a bill that cuts taxes by nearly half a billion dollars for Wisconsin businesses that accepted loans to help them through the coronavirus pandemic.
Evers signed the bill Thursday, noting in a statement released shortly afterwards that the measure will also provide $30 million in tax relief for low income families.
“This past year has been challenging and unrelenting for so many, but since the beginning of this pandemic, we’ve been committed to providing economic relief to the folks who’ve been affected by the pandemic,” Gov. Evers said.
The new law makes loans administered through the federal government’s Paycheck Protection Program tax deductible under Wisconsin’s tax code.
State Representative Jim Steineke (R-Kaukauna) said Tuesday that PPP loans that businesses used to “stay afloat” should not now be the reason that they have to close their doors.
“It’s no secret that small businesses around the state have had to endure challenge after challenge over the last year – putting an unnecessary and unexpected tax burden on them should not be another obstacle they have to overcome,” Steineke said.
The loans are already tax deductible under federal law but not under the state code. It’s estimated to result in a state tax cut of $540 million by the middle of 2023.
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