Ravenstahl votes with working families, helps protect stimulus payments from taxes
Legislation passed today would exempt stimulus checks, federal loans from state and local taxes
PITTSBURGH, May 4 – Today state Rep. Adam Ravenstahl voted to protect taxpayers and businesses from undue burden by voting to exempt federal stimulus payments and business loans from local and state taxes.
“When the federal government passed the CARES act, they left it up to the states as to whether those payments would be taxed or not,” Ravenstahl said. “To me, that isn’t even a question. At a time when so many families and businesses are hurting and every dollar counts, this is an automatic decision to make sure they can keep their full benefits.”
In response to COVID-19, Congress took swift action to adopt the CARES Act to help people and businesses stay afloat. Included in that coronavirus response were provisions to provide much-needed cash payments to people making less than $99,000 and couples making less than $198,000.
While these dollars are exempt from federal taxes, it is up to Pennsylvania to decide whether they are subject to tax under state law. Today the House passed HB 2408, a bill cosponsored by Ravenstahl, to provide that exemption. Additionally, the bill would allow charities and nonprofits to restructure their investment incomes to help them weather the coronavirus storm, and exempt loan forgiveness for federal Paycheck Protection Program loans to businesses from taxation.
“I know that many charities and nonprofits are struggling, and these changes should help them through the current crisis so they can continue to stay afloat to help their local communities and families in times of need,” Ravenstahl said. “I was happy to work with legislators of both parties to get this legislation passed through the House.”