Senator Eric Lesser, Senate Committee On Ways and Means Thanks MaSEA

A short but sweet thank you was sent from Senator Lesser to MaSEA and Mason Klinck in particular for helping to push for the state legislation changing the taxation of forgiven PPP loans. Mason, John Warren, and others in MaSEA pushed the state to treat the forgiven PPP loans as the federal government is doing, that is, treat the forgiveness as tax-exempt income. 

"Belated thank you, Mason. I'm happy to report that this bill will be rolled into a larger piece of legislation and should be headed to the Governor's desk soon," Lesser.

If passed, SD 172 will make this change to PPP treatment and also reduce taxation of unemployment. It is currently working its way through the statehouse. The high number of legislators now supporting the bill are raising hopes that it will pass. We await the news. It is worth considering putting MA partnerships and MA S-corps returns with 2020 forgiveness of PPP loans on extension. It is worth considering putting all returns with unemployment where the AGI is below $150,000 on hold for a few weeks while we await the federal bills passing and learn more about the state bill. (Please note:  It is possible that the state bill will change to better align the unemployment treatment given the federal bill, although not certain.)