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Tax Treatment of PPP Loans in California

| Feb 17, 2021 | FTB, IRS, New Laws |

Many tax preparers and businesses are wondering about the status of PPP loan deductions when preparing their state income tax returns this year.  While the federal government has provided that businesses may deduct the expenses covered by the PPP loans, the California Franchise Tax Board has not yet conformed to the federal law.

Stakeholders are vigorously advocating for a Quick Passage of Assembly Bill 281 (Burke) which would bring relief to California employers and remove penalties for businesses that received COVID-relief loans.

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