Texas Bill Seeks To Exclude Forgiven PPP Loans From Income

Texas would exclude forgiven loan amounts that were issued as a response to the novel coronavirus pandemic from gross income under a bill introduced in the state Senate.

S.B. 372, which Sen. Kelly Hancock, D-Fort Worth, introduced Thursday, would exclude Paycheck Protection Program loans forgiven under the Coronavirus Aid, Relief and Economic Security Act as amended by the Paycheck Protection Program Flexibility Act from gross income. However, loan money used for qualifying expenses could be included in determining cost of goods sold, according to the bill.

If enacted, the bill would take effect Sept. 1, 2021.

--Editing by Vincent Sherry. 

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