California: Governor Signs PPP Conformity Bill

Listen to a brief overview of state tax developments this week, including California, or read full California development below.

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


To view past weeks of TWIST that you may have missed, please visit our TWIST homepage.

To receive the TWIST e-mail each Monday, make sure that State and Local Tax is checked off as one of your topics of interest on the KPMG Tax subscription site.

Featured Speaker

Sarah McGahan

Sarah McGahan

Managing Director, State & Local Tax, KPMG US