PPP loan for California

[sffdib]

I received this email this morning. I encourage all California tax preparers and their clients to sign this petition. 

Dear Friend,

During the pandemic, businesses have struggled to pay bills, keep their workers employed, and service their customers. Businesses received a lifeline with Paycheck Protection Program (PPP) loans from the federal government.

The federal government has decided that business expenses paid with the PPP loans are tax exempt, but California has not yet conformed to that standard. This has left many small businesses with major state tax liabilities as they are trying to recover from the economic fallout of the shutdowns.

In order to help these struggling business owners, I have introduced Senate Bill 265 to ensure businesses don’t pay taxes on PPP loans. The state of California has collected $14.3 billion in unanticipated revenue; there is no need to penalize California’s job creators with a tax.

As California’s job market begins to recover, we must work to save businesses while protecting jobs.

CLICK HERE to share your support of SB 265.

Sincerely,

Andreas Borgeas
California State Senator

[BobKamman]

Well, that's interesting.  He represents the Raisin Capital of the World but he was born right here in Phoenix.  Arizona hasn't conformed either but we have a Republican governor so no one is trying to make poltiical hay out of it.