PPP State Tax Treatment Chart

The Paycheck Protection Program (PPP), created as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act and extended under the Consolidated Appropriations Act, 2021, provides much-needed relief for businesses as they struggle to maintain operations and employment. While the CARES Act specifically excludes forgiven loan funds from taxable income at the federal level, the deductibility of the underlying expenses remained elusive until the enactment of the Consolidated Appropriations Act, 2021.

While the treatment of PPP loan forgiveness taxability