Rep. Cline Leads Letter Calling on Governor Northam to Support Struggling Small Businesses
WASHINGTON – Congressman Ben Cline (VA-06) was joined by Congressmen Wittman and Good in writing to Governor Northam encouraging him and the General Assembly to fully conform state tax law to the federal government’s recently enacted tax law and allow for full deductibility of Paycheck Protection Program (PPP) loans in order to ensure the recovery of Virginia small businesses.
As part of the Consolidated Appropriations Act passed last year, Congress provided for the full deductibility of necessary business expenses that were paid with a forgiven or forgivable PPP loan. The General Assembly is currently considering whether to conform Virginia state tax law to that of the federal government, and at what level the state will allow for the deductibility of forgiven or forgivable PPP loans.
“The Paycheck Protection Program has served as a lifeline to more than 100,000 Virginia small businesses and their employees since the pandemic began,” Cline said. “Congress made its intent clear that these loans were to be forgiven and fully deductible due to COVID-19, and now it is time for Governor Northam and the General Assembly to do their part and support mom and pop shops across the Commonwealth. Failing to conform state tax law with that of the federal government would stick those most in need with a sizable tax bill they did not expect and cannot afford. I am confident those serving in Richmond will do the right thing.”
The full letter can be found here.
Congressman Ben Cline represents the Sixth Congressional District of Virginia. He previously was an attorney in private practice and served both as an assistant prosecutor and Member of the Virginia House of Delegates. Cline and his wife, Elizabeth, live in Botetourt County with their two children.