SB 104 – Align PPP Tax Treatment to Federal Treatment

SB 104 – Align PPP Tax Treatment to Federal Treatment

Primary Senate Sponsors: Sen. Chuck Edwards (R-Buncombe; Henderson; Transylvania); Sen. Jim Perry (R-Lenoir; Wayne); Sen. David Craven (R-Guilford, Randolph)

Summary

This bill repeals GS 105-130.5(a)(32) and GS 105-153.5(c2)(20), which require corporate and individual taxpayers to add the amount of any expense deducted under the Internal Revenue Code to the taxpayer’s adjusted gross income if that expense results in forgiveness of a covered loan under the section of the CARES Act governing the Payment Protection Program and the income associated with the forgiveness is excluded from gross income pursuant to section 1106(i) of the CARES Act.

Movement

Filed – 1/16/2021