Bill seeks to give more NC tax breaks on COVID-19 loans

(Photo: Piqsels)

RALEIGH, NC (AP) — The state House is backing legislation that would give additional state tax breaks to businesses that took federal loans to weather the COVID-19 pandemic. But the Senate isn’t yet fully on board with the idea, which comes with a hefty price tag.

The House gave initial approval to the measure on Thursday by an overwhelming margin.

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It allows businesses that spent Payroll Protection Program loan proceeds to deduct the expenses from their income for state tax purposes.

The PPP money was designed to keep workers at shuttered firms employed. The proposal could mean $400 million less revenue for the state.