MADISON – The Senate Committee on Financial Institutions and Revenue approved an amendment to Senate Bill 2 (SB 2) on Thursday that will ensure Wisconsin businesses can deduct expenses paid for with revenue from the federal Paycheck Protection Program (PPP). Without the amendment – authored by Sen. Rob Stafsholt and Sen. Roger Roth – employers could face hundreds of millions of dollars in unexpected taxes.
SB 2 would need to be passed by both the Senate and Assembly before heading to Gov. Tony Evers’ desk to be signed into law.
After the committee’s action, Wisconsin Manufacturers & Commerce (WMC) General Counsel and Director of Tax, Transportation and Legal Affairs Cory Fish released the following statement:
“Wisconsin businesses were told they could receive forgivable and tax-free PPP loans to help them survive COVID-19 and subsequent government shutdowns. While these funds were critical to so many employers and their employees, businesses could now face a hefty and surprising tax bill.
“WMC and our members applaud the efforts of Sens. Stafsholt, Roth, Kooyenga and Marklein for moving forward legislation that will protect thousands of small businesses from these unexpected taxes. We urge legislators and Gov. Evers to support SB 2 to fulfill the promise that these funds would be available tax-free to all recipients.”