By: Geren H.B. No. 1195
A BILL TO BE ENTITLED
AN ACT
relating to the forgiveness of a loan made under the Paycheck
Protection Program for franchise tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1011, Tax Code is amended by adding
subsection (y) to read as follows:
(y) Total revenue does not include any amount of loan
forgiven under the Paycheck Protection Program, as provided for
under section 1106 of the Coronavirus Aid, Relief, and Economic
Security Act, as amended by the Paycheck Protection Program
Flexibility Act. Qualifying expenses paid with such loan proceeds
may be included in the determination of cost of goods sold under
Section 171.1012 or in the determination of compensation under
Section 171.1013.
SECTION 2. This Act applies only to a report originally due
on or after January 1, 2021.
SECTION 3. Except as provided in SECTION 2 of this Act, this
Act takes effect September 1, 2021.