Ciresi resolution urges Congress to ease tax burden on struggling local businesses
HARRISBURG, Nov. 17 – State Rep. Joe Ciresi, D-Montgomery, introduced a resolution this week urging Congress to exempt federal CARES Act small business relief from taxation.
House Resolution 1089 was officially introduced Monday and referred to the House Finance Committee.
To help mitigate the impact of the COVID-19 pandemic on Pennsylvania small businesses, the General Assembly in Harrisburg allocated some of the CARES Act funding to small business relief. However, the IRS has ruled that this relief will be taxed at the federal level.
“This punishes already struggling small and local businesses for taking advantage of this critically necessary aid,” Ciresi said. “Congress must pass legislation to protect these businesses and exempt this relief from taxes, and this resolution urges them to do so. Small businesses are the backbone of our commonwealth’s economy and have already been severely impacted by closures forced by COVID-19.”
Ciresi said he’s communicated with several local business owners from his 146th Legislative District and was surprised to learn the tax implications the CARES Act grants have imposed.
“The relief that was supposed to ensure that they could stay afloat has become a burden to small businesses, inhibiting their ability to recover and provide high-quality jobs across the state,” Ciresi said. “The small business owners in my district and across Pennsylvania are counting on us to make sure their voices are heard. This resolution does that.”
More information about H.R. 1089 is available by contacting Ciresi’s office at 484-200-8265.