South Carolina state consultant Laurie Slade Funderburk seen one thing was ‘off’ with the best way the Palmetto State was poised to deal with loans for small companies decimated by the fallout from the coronavirus pandemic.
So she determined to do one thing about it …
Funderburk – who hails from Camden, S.C. (the unique Covid-19 epicenter within the Palmetto State) – realized that in contrast to the federal authorities, South Carolina was set to deal with absolutely or partially forgiven loans related to the Paycheck Safety Program (PPP) as taxable earnings.
Left unaddressed, this is able to have led to an sudden tax improve on South Carolina companies who acquired these loans … at a time once they may least afford to soak up such a success.
This week, Funderburk proposed an modification to a federal stimulus appropriations invoice geared toward correcting the issue.
Particularly, her modification will conform the South Carolina tax code to the Inner Income Service (IRS) code – making the entire earnings related to these absolutely or partially forgiven loans tax-free.
“Many small businesses in SC applied for and received PPP loans in order to weather the economic downtown due to the pandemic and keep the doors open,” Funderburk advised us. “I didn’t want our small businesses further burdened by an unexpected tax.”
Good pondering …
Funderburk’s modification was supported by her desk-mate within the S.C. Home, fellow Democrat Mandy Powers Norrell of Lancaster, S.C.
“As a small business owner and as someone who represents many small business owners in Lancaster county, I was proud to support my seat mate in this forward-thinking amendment,” Norrell advised us. “The federal government promised PPP recipients their forgiven loans would not be taxed, but they didn’t have the authority to promise that for the state.”
“Passing this amendment means that business owners don’t get an unwelcome surprise when they file their 2020 taxes,” Norrell added, praising Funderburk for “always thinking one step ahead.”
Clearly this isn’t an enormous amount of cash, however each penny counts … and Funderburk is to be recommended for recognizing this drawback and taking corrective motion to handle it.
Each Funderburk and Norrell are in aggressive Home races this fall. Funderburk has represented S.C. Home District 52 in Kershaw county (.pdf) since 2004, whereas Norrell has represented S.C. Home District 45 (.pdf) since 2012.
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