A Chamber-led coalition is working to support legislation authored by Assemblymember Autumn Burke that will address new questions around the PPP loans. In short, the issue is that PPP loans were used to pay for expenses that are traditionally deductible at the state and federal levels. Federal guidance has confirmed this to be the case but the state passed legislation last year that would not allow for those expenses to be deductible. As a result, conforming legislation is necessary. Stay tuned for additional information, but for now, the vehicle that is being held to address the issue is AB 281.
Asm. Burke Introduces Legislation to Address PPP Loan Deductibility Conformity
January 27, 2021