Texas Businesses Do Not Have to Pay Franchise Taxes on Forgiven PPP loans.
After a major push to prevent Texas businesses from paying franchise taxes on forgivable Paycheck Protection Program (PPP) loans, Governor Greg Abbott signed House Bill 1195 yesterday. This is a major victory for businesses in Texas who received PPP loans to help make ends meet over the course of the pandemic. The terms of the PPP were simple: if qualifying small businesses use a federally guaranteed loan to pay their employees and cover certain non-payroll expenses, the loan will be forgiven. Your Chamber met with legislators, summitted testimony, and made numerous calls to ensure that businesses would not be met with a surprise tax.
Economic recovery for San Antonio businesses has been a top priority for the Chamber, as many have struggled to stay open and make payroll. This bill becoming law demonstrates our success in garnering the support of state leaders to provide certainty and stability for businesses and employees in Texas as they recover from the impacts of COVID-19.