Tax Relief

PA Senate inexperienced mild tax relief bundle | information

Pennsylvania Senate Bill 109, signed by Governor Tom Wolf on Friday, provides tax relief for economic stimulus funds, as well as additional funding for schools and small businesses, particularly restaurants, hotels, and others in the hospitality industry.

Senator Michele Brooks (R-50.) Backed the $ 912 million aid package and said tax forgiveness was vital for small businesses and families.

“Taxing an aid package would only have made the injury worse for the Pennsylvanians who have suffered enough financially from the pandemic,” Brooks said in a press release.

Brooks added that the Treasury Department announced a plan to tax stimulus payments made to Americans, but that this bill will put an end to that.

Under the law, $ 197 million is earmarked for closed schools that have not yet received funding, as well as support for career and technical centers and community colleges.

A separate aid package has already been created to support Pennsylvania public schools. Wolf announced on February 4 that $ 1.3 billion was part of his agenda for 2021.

Funding for schools must be requested through the state Ministry of Education, which administers the funds in accordance with federal guidelines.

For non-public schools, the PDE will submit a notice of termination and an application for the money no later than 30 days after receipt by the federal government.

PDE approves or rejects applications no later than 30 days after receipt of an application.

Bars and restaurants provide around $ 145 million in grants set by the county, with a certified economic development organization or a community development financial institution managing the funds.

Applicants must certify in good faith that their needs are related to COVID. The grants are intended to help cover operating costs such as payroll, mortgage, rent and ancillary costs between March 1, 2020 and June 15, 2021.

This grant money cannot be used for the exact same operational costs already covered by PPP loans or the previous Small Business Assistance program of the Department for Economic Development of the Community.

Priority will be given to companies that have not yet received a loan or grant, as well as companies that are forced to close due to Wolf’s disaster statements, and companies that can reduce gross revenues by at least 50%.

Grants are in increments of $ 5,000 and cannot exceed $ 50,000. All grants will be paid out by July 31st.

The Department of Community and Economic Development (DCED) will begin distributing the $ 145 million to counties based on their population share.

Most of the remaining $ 912 million package goes towards renting and helping tenants and landlords.

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