SB 116 Amendment and Vote
June 4th Update:
The House passed SB 116 by a vote of 71-36 today. The split was mostly along party lines; seven Democrats broke ranks and voted in favor. Debate on the bill was spirited and focused mainly on the proposed withdrawal from the Federal Pandemic Unemployment Compensation Agreement.
The House adopted a floor amendment by Speaker Moore adding a provision that would appropriate $250 million from federal Child Care and Development Block Grant funds to be used for subsidized childcare for eligible children.
The bill is headed back to the Senate for further consideration.
June 3rd Update:
The House Finance Committee on Wednesday adopted an amendment to rewrite SB 116. Previously, it dealt with easing attendance restrictions at high school sporting events. Now, retitled as the Putting North Carolina Back to Work Act, the bill would:
Withdraw the state from the Federal Pandemic Unemployment Compensation Agreement. An agreement that provides a supplemental $300/week to recipients of unemployment benefits through 9/6/21.
Allow for the deduction of expenses related to forgiven PPP loans for the 2020 and 2021 tax years.
Conform to the federal exclusion of the first $10,200 of unemployment compensation received in 2020.
SB 116 is scheduled for a House floor vote on the second and third reading at 11 am today. If adopted, this will be the second bill that the House has sent to the Senate with PPP expense deductibility provisions. The Senate’s tax relief and IRC conformity bill, which contains language creating a grant program for recipients of PPP loans and other federal pandemic assistance, still awaits action in the Senate Rules Committee.
Stay Tuned!
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*Updates and guidance are issued daily. The information above may change.