The Paycheck Protection Program (PPP) was created to provide relief for small businesses impacted by the COVID-19 pandemic. Many companies in New Jersey have both applied for and received these loans in the past several months.
As each state is different, here in New Jersey, business owners may face potential taxation on PPP forgiven loans. However, a newly proposed bill would potentially ensure that forgiven PPP loans would NOT be subject to New Jersey taxable income. The new bill would also allow the deduction of expenses paid for by a PPP loan, even if that loan is forgiven.
The bill passed the Senate and now goes to the Assembly Appropriations Committee. We’ll keep you posted on any updates. In the meantime, feel free to contact the Cg Team with questions.