Bradley attorney Bruce Ely was quoted in Bloomberg Tax on the pressure state legislatures and revenue agencies are facing to clarify the tax features of their pandemic relief laws. In at least a dozen states, taxpayers are awaiting clarity on state tax approaches to the Paycheck Protection Program. Only a handful of states have announced whether they conform to the federal tax rules governing the loan program, with 17 states reportedly conforming to the federal rule specifying that forgiven loans won’t be taxed as income and four conforming to the new expense deductibility rule.
That leaves a lot of room for action in the remaining states, said Ely.
“Every state that has an income tax is going to have to revisit these issues in light of the CARES Act” and the December stimulus law, he added.
The original article, "States Feel Pressure to Respond to Tax Features of CARES Act,' appeared in Bloomberg Tax on January 27, 2021.