MADISON – The Joint Finance Committee (JFC) approved an amendment to Assembly Bill 2 (AB 2) on Wednesday that will ensure Wisconsin businesses can deduct expenses paid for with revenue from the federal Paycheck Protection Program (PPP). Without the amendment, employers could face hundreds of millions of dollars in unexpected taxes.
After getting bipartisan support, it will now go to a vote of the full Assembly and Senate. If passed, the legislation would head to Gov. Tony Evers’ desk for his signature.
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 through the worst economic downturn in a generation. In the face of COVID-19, these funds were critical to thousands of employers and their employees. Unfortunately, as many businesses continue to struggle, they could now face a hefty and surprising tax bill.
“Sen. Marklein and Reps. Born, Wittke and Armstrong deserve immense credit for protecting Wisconsin employers from these unexpected taxes. WMC and our members urge legislators and Gov. Evers to support this legislation, which is crucial to upholding the promise that these funds would be available tax-free to all recipients.”