SBA, Tax

New Jersey Business Safe From State Taxes for Forgiven Paycheck Protection Program Loans

We previously emailed you correspondence in connection with a proposed bill that would provide tax relief for COVID-19-affected New Jersey businesses when Paycheck Protection Program (PPP) loans are forgiven. In a press release from the New Jersey Department of the Treasury1, it was recently announced that New Jersey businesses will be exempt from state tax for forgiven PPP loans.

Per the press release, “Governor Phil Murphy and State Treasurer Elizabeth Maher Muoio announced today that New Jersey will follow the federal government’s lead in allowing Paycheck Protection Program (PPP) loans to be tax exempt at the state level and enabling recipients to deduct business expenses that were paid with the tax-exempt loan proceeds, thereby enhancing the tax benefits of the loans.”1

Please click here to read the full press release containing the specific details.

For questions about your specific tax situation or PPP loan, please reach out to the Cg Team.

1. Official Site of the State of New Jersey Department of the Treasury. (2021, February 9). Governor Murphy, Treasurer Muoio Announce Plan to Follow Federal Government’s Lead to Enhance the Benefits of Paycheck Protection Program Loans [Press release].