RICHMAND, Virginia (WRIC) – Gov. Glen Yangkin has signed a two-party bill that exempts small businesses from paying taxes on subsidies to help COVID.
Amendments to the State Tax Code adopted as HB971 with the unanimous support of the House of Representatives and the Senate, bring the state in line with federal tax policies adopted as part of President Joe Biden’s decision American Rescue Plan Act.
“This bill ensures that business assistance programs do not turn into tax liabilities that hinder Virginia’s economic recovery,” Gov. Glen Yangkin said in a statement.
The policy means that small businesses that have received a payroll loan or a restaurant revitalization grant will not have to pay federal or state taxes on that money.
Delegate Katie Byron (R – Bedford). The bill’s deputy said in a statement: “Making our tax code in line with the federal government is not only the right principle, it’s also good for business and for the everyday people of Virginia.”
The bill included a state of emergency and would take effect immediately.