Va. Bill Seeks Virus Relief Loan Exemption From State Tax

Virginia businesses that receive forgivable loans authorized by federal coronavirus relief legislation would not incur state income tax on the aid, under a bill introduced in the state House of Delegates.

H.B. 5002, introduced Tuesday by Del. Joseph McNamara, R-Roanoke, would exempt forgiven Paycheck Protection Program loans from state taxes.

The Internal Revenue Service has issued guidance indicating that expenses covered by loans forgiven under the program, which was created by the Coronavirus Aid, Relief, and Economic Security Act , would not be deductible for federal tax purposes.

The bill was prefiled on July 30.

--Editing by Neil Cohen.

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