Small business has suffered greatly during the COVID pandemic. Illness of employees and ordered closings have caused great stress and endangered the livelihoods of many.

Federal Payroll Protection Program (PPP) loans have helped keep lights on and doors open for many small businesses. Now a new threat emerges. While the federal government has made PPP loan proceeds non-taxable, the Kentucky Department of Revenue is not allowing those same businesses to deduct the payroll expenses paid during the crisis. If this is not fixed during the current General Assembly, this surprise tax bill may be the straw that breaks the backs of many Main Street businesses that are just hanging on. A special thank you goes out to the people of House District 96. 

Your State Representative, Patrick Flannery, was the first to file legislation to protect small business from this challenge. His House Bill 278 would require the Kentucky Department of Revenue to allow small businesses to deduct the expenses that helped keep their employees on the job. His strong efforts have brought co-sponsors to the bill and pushed it into a priority position. Flannery has shown a strong commitment to our "Mom & Pop" businesses. The National Federation of Independent Business is the Voice of Small Business. We hope you will join us in thanking him for standing up for Kentucky entrepreneurs.

 

Fine job by Flannery

Small business has suffered greatly during the COVID pandemic. Illness of employees and ordered closings have caused great stress and endangered the livelihoods of many.

Federal Payroll Protection Program (PPP) loans have helped keep lights on and doors open for many small businesses. Now a new threat emerges. While the federal government has made PPP loan proceeds non-taxable, the Kentucky Department of Revenue is not allowing those same businesses to deduct the payroll expenses paid during the crisis. If this is not fixed during the current General Assembly, this surprise tax bill may be the straw that breaks the backs of many Main Street businesses that are just hanging on. A special thank you goes out to the people of House District 96. 

Your State Representative, Patrick Flannery, was the first to file legislation to protect small business from this challenge. His House Bill 278 would require the Kentucky Department of Revenue to allow small businesses to deduct the expenses that helped keep their employees on the job. His strong efforts have brought co-sponsors to the bill and pushed it into a priority position. Flannery has shown a strong commitment to our "Mom & Pop" businesses. The National Federation of Independent Business is the Voice of Small Business. We hope you will join us in thanking him for standing up for Kentucky entrepreneurs.

 

Tom Underwood

National Federation of Independent Business/Ky. Director

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