AB 80 is being Green LIghted - Spidell

AB 80 is being Green LIghted

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Message Board AB 80 is being Green LIghted

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    • #298171
      Neil Silverstein
      Participant

      From: Cootsona, Lizzie <Lizzie.Cootsona@asm.ca.gov>
      Sent: Thursday, April 8, 2021 9:06 AM
      To: Neil Silverstein <neil@cpaneil.com>
      Subject: PPP Loan Forgiveness Update

      Hi Neil,

      Thank you for reaching out to our office in regard to California conforming to PPP loan forgiveness.

      As you may know, the state’s lawyers have been waiting on additional guidance from the federal government regarding a provision that banned state tax cuts and deductions upon receiving the American Rescue Plan funds.
      The IRS and the Treasury have announced yesterday that states can conform to recent federal tax benefits (such as the allowance of deductions for amounts paid with forgiven PPP debt) and still benefit from the federal funding provided to states through the American Rescue Plan Act (ARPA). This eliminates the concern about whether California would lose federal ARPA funding if California enacts AB 80, which would allow taxpayers to deduct up to $150,000 in expenses paid with forgiven PPP debt.

      The full text of the Treasury guidance can be found at: https://home.treasury.gov/news/press-releases/jy0113
      With this update, we are hopeful to see AB 80 (Burke) continue through the legislative process.

      Let me know if you have any additional questions.

      Best,

    • #298187
      Elizabeth James
      Participant

      Thank you for posting this update!

      I am looking forward to AB80 passing (soon, I hope). In the meantime, extensions continue.

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