Budget amendment will give companies more time to pay tax on PPP loans
State House – House Speaker K. Joseph Shekarchi, President of the Senate President Dominick J. Ruggerio and Governor Dan McKee announced that the budget to be considered on the House floor today will contain an amendment to provide more time for companies to make payments for state taxation of Paycheck Protection Program (PPP) loans.
Companies that profited from loans in excess of $250,000 are subject to state taxation. In the amendment to be offered today, those companies that would be taxed have until March 31, 2022 to provide interest-free payment on their 2020 forgivable loans. Ninety-three percent of loan recipients will not be taxed.
“We realize that these companies must file amendments to their tax returns for the 2020 loans, so we are giving them nine additional months to pay the state tax without penalty or interest,” said Speaker Shekarchi. “The money that is budgeted for the state tax is booked for the upcoming fiscal year, so there is no need for businesses to rush to amend their tax returns.”
“I was pleased to work collaboratively with Governor McKee and Speaker Shekarchi to add this additional flexibility for the business community in our state. The PPP loans helped many companies stay afloat during the worst of the pandemic, and I look forward to continuing to work collaboratively with the business community as we work to rebuild the Rhode Island economy,” said President Ruggerio.
“I thank the Speaker and Senate President for their continued partnership in identifying ways to support businesses as we emerge from the pandemic,” said Governor McKee. “Giving businesses the additional time to pay the state tax on PPP loans without penalty or interest will provide them with added flexibility as our economy restarts and they plan for the future.”
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