Will Massachusetts business owners with COVID grants face larger tax bills? Baker administration supports legislative ‘fix’
Updated Mar 02, 2021;
While the federal government made forgiven loans under the Paycheck Protection Program tax-free, small business owners in Massachusetts could still face a larger tax bill due to a forgiven PPP loan or state business grant.
The state makes forgiven PPP loans from corporations tax-free because the state corporate tax code conforms to the federal code, but the state’s code for individual income tax doesn’t default to federal code, Administration and Finance Secretary Michael Heffernan told lawmakers during Tuesday’s budget hearing. Barring any change in state law, Massachusetts would tax forgiven PPP loans of independent contractors or small businesses the type of borrowers Congress aimed to help in the first place.
How the fiscal 2022 budget could affect mail-in voting, education and taxes in Massachusetts
Updated Mar 03, 2021;
Massachusetts agency leaders overseeing elections, criminal justice and other areas of government came into the budget hearing with one complaint: they need more money than what the governor’s fiscal 2022 budget offers.
The Ways and Means Committee heard from Baker administration officials overseeing the state’s finances, criminal investigations and technology during a four-hour hearing Tuesday focusing on Gov. Charlie Baker’s $45.6 billion budget plan. The Republican governor’s budget has a smaller bottom line than his previous budget did, a first in recent memory but not entirely unexpected as the state assesses the economic impact of the COVID-19 pandemic.
Tax Bills May Be Slapped on Small Biz Recovery Grants bankerandtradesman.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bankerandtradesman.com Daily Mail and Mail on Sunday newspapers.
Kicking off annual hearings on Gov. Charlie Baker s budget proposal for next year, the top Senate Democrat on the budget-writing committee told the administration that lawmakers want to play a highly constructive and meaningful role in determining how billions in potential new federal stimulus funding gets spent. We need to think carefully about how we responsibly and carefully use these resources to best position the commonwealth for long-term success, said Sen. Michael Rodrigues, chair of the Senate Ways and Means Committee.
Michael Rodrigues FACEBOOK PHOTO
Rodrigues was referring to the funding that could flow to Massachusetts from President Joe Biden s $1.9 trillion COVID-19 relief bill that passed the House last week. The state could receive $4.5 billion in aid under the bill, which remains subject to change as it heads to the Senate.
Hearings to start March 2 on Gov Charlie Baker s $45 6 billion budget proposal masslive.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from masslive.com Daily Mail and Mail on Sunday newspapers.