ACTION ALERT - PPP LOAN TAX CONFORMITY
Contact your state legislatures - urge them to support
How Payroll Protection Plan tax law impacts you
The drastic effects on businesses from COVID-19 are well known. Every day another business closes its doors. While federal dollars helped some businesses weather the storm, Congress recognized that this emergency funding should not be taxable — and made sure that it would not be at the federal level, but not under Minnesota tax law:
Forgivable PPP loans are taxable at the state level.
Many employers used PPP funding to keep employees on payroll and withstand the economic downturn caused by the COVID-19 pandemic. Providing state tax conformity to forgiven PPP loans, is another tool the Legislature can implement to help our employers and job creators continue to keep their businesses open and employees on the payroll.
Legislative leaders and Governor Walz have agreed (in principle) to enact full federal tax conformity on forgiven PPP loans. We strongly encourage the Legislature to include this agreement in the final budget package.
Please contact your legislator! Urge them to support federal tax conformity for forgiven PPP loans.
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