Tax headaches have started early for American small businesses this tax season. States can help these employers and accelerate the economic recovery by clarifying that business expenses paid from Paycheck Protection Plan loans are fully tax-deductible, in-line with federal tax law.
The PPP is one of the most successful government programs in American history. It distributed $525 billion worth of forgivable loans to more than 5 million small businesses nationwide, supporting over 50 million jobs. Without the PPP, unemployment would have been far higher and the economic contraction much more severe. The PPP served as a bridge to get small businesses over the worst depths of the pandemic. Yet state tax rules threaten to undercut its success.Read More