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AN ACT
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relating to the forgiveness of a loan made under the Paycheck |
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Protection Program for franchise tax purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1011, Tax Code is amended by adding |
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subsection (y) to read as follows: |
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(y) Total revenue does not include any amount of loan forgiven |
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under the Paycheck Protection Program, as provided for under |
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section 1106 of the Coronavirus Aid, Relief, and Economic Security |
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Act, as amended by the Paycheck Protection Program Flexibility Act. |
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Qualifying expenses paid with such loan proceeds may be included in |
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the determination of cost of goods sold under Section 171.1012 or in |
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the determination of compensation under Section 171.1013. |
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SECTION 2. This Act applies only to a report originally due |
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on or after January 1, 2021. |
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SECTION 3. Except as provided in SECTION 2 of this Act, |
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this Act takes effect September 1, 2021. |