Detailed California Development
Governor Gavin Newsom signed Assembly Bill 80 into law on April 29, 2021, thus adding California to the states that partially conform to the federal treatment of forgiven Paycheck Protection Program (PPP) loans. The bill excludes from gross income all forgiven PPP loans for taxable years beginning on or after January 1, 2019. The bill also generally conforms to the federal treatment of deductibility of expenses paid for with forgiven loan amounts, with an exclusion for “ineligible entities.” “Ineligible entities” are certain publicly traded companies and companies that did not experience at least a 25 percent reduction in gross receipts (as determined under the Consolidated Appropriations Act). Please stay tuned to TWIST for further PPP updates.
This Week's Developments