PPP Loan Tax Exemption Bills Go into Conference in Virginia General Assembly

The General Assembly has so far failed to find middle ground for tax breaks on forgiven Paycheck Protection Plan (PPP) loans, and will now form a committee of three senators and three delegates to reconcile differences between the two chambers.

While a Senate bill calls for a $100,000 cap on income deductions claimed under PPP expenditures, the House of Delegates bill calls for only a $25,000 cap. When the two chambers considered each other’s bills, the House modified SB 1146 to a $25,000 cap, while the Senate amended HB 1935 to a $100,000 cap. After passing the modified versions, both chambers then rejected the modified versions of their original bills. On Friday, the two chambers agreed to form a conference committee to work together to create a bill that can pass both chambers.

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