PPP loan California tax deduction bill is on Newsom s desk - Silicon Valley Business Journal
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California lawmakers revive coronavirus tax break for businesses
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SACRAMENTO, Calif.
California lawmakers on Monday revived a multibillion-dollar tax break for some businesses after the Biden administration assured them the proposal would not jeopardize the state’s own federal coronavirus aid.
The federal government has given California companies about $97 billion in loans during the pandemic, the majority of which business owners won’t have to pay back. Congress already lets business owners deduct expenses associated with those loans from their federal taxes. But California business owners still owe state taxes on that money.
California lawmakers wanted to change that, and they were prepared to do it earlier this year. But they put it off because they were afraid the proposal could force them to lose some of their own federal coronavirus aid.
California lawmakers revive virus tax break for businesses
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April 20, 2021
SACRAMENTO, Calif. (AP) California lawmakers on Monday revived a multibillion-dollar tax break for some businesses after the Biden administration assured them the proposal would not jeopardize the state’s own federal coronavirus aid.
The federal government has given California companies about $97 billion in loans during the pandemic, the majority of which business owners won’t have to pay back. Congress also gave $26 billion to California’s state government as part of the most recent coronavirus relief package President Joe Biden signed last month.
Congress already lets business owners deduct expenses associated with those coronavirus loans from their federal taxes. But California business owners still owe state taxes on that money.