What does the statement "California does not confirm to any credit or deduction as a result of the PPP
loan forgiveness amounts. Any credit or deduction otherwise allowed for any amount paid or incurred should be reduced by the amount of the exclusion allowed under the PPP for California Purposes
"Some states have a deduction but do not see one for Califronia"
Because it specifically is the opposite; CA is nonconforming, means, it did not agree to do the same as the Feds.
If you got PPP of $10,000 then that much in wages is not deductible as expense for CA. They are not taxing the forgiven debt as income, but they are not allowing you to also include the offsetting expense as deductible. For every other State that conforms to Fed, and for Fed, you are getting a double-benefit: not taxable income and still get to deduct the expenses.
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