87(R) SB 372 - Introduced version - Bill Text

	By:  Hancock	S.B.  No.  372

	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.