California “will not tax” forgiven Paycheck Protection Program (PPP) loan amounts. For tax years beginning on and after January 1, 2020, California conforms to federal law excluding from income any covered loan amount forgiven pursuant to:
Section 1106 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136);
the Paycheck Protection Program and Health Care Enhancement Act (P.L. 116-139); or
the Paycheck Protection Program Flexibility Act of 2020 (P.L. 116-142).
For California purposes, “covered loan” has the same meaning as in the CARES Act.
The BAD – No Credit or Deduction for […]