california ppp loan forgiveness spidell california ppp loan forgiveness spidell

ODE0ZjA1OTZlMmYzNGViM2E4NWJiYTMwNzQ0N2I2YmVhZTE1MDVlNWJjOTJk Spidell Publishing - one of California's leading continuing education organizations - is reporting that the PPP loan forgiveness exclusion enacted by AB 80 (Ch. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The agreement provides $600 in one-time relief to households receiving the California EITC for 2020. The documentation must clearly identify both of the reference quarters (if not using annual comparison), must 1577 disallows a credit or deduction for Loan Forgiveness Eligible Expenses to the extent of the Forgiven Loan Amount. Lauren is a senior associate working in the Washington National Tax practice of Deloitte Tax LLP. 21-17) does not apply to either first- or second-draw loans received after March 31, 2021. This content supports Grant Thornton LLPs marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. Fill the form below and we'll contact you to schedule an appointment: Grimbleby ColemanCertifiedPublicAccountants,Inc. California Conforms to Federal PPP Loan Forgiveness Rules. MjhlMTk5ZGY1MzFiNTZlYzQ5N2ZlMTAyOGIwYzZhZDAwOGU4ZDQ5N2U4Nzlj BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. On June 30, 2022, AB 194 was enacted which allowed an income exclusion for covered loan amounts forgiven pursuant to the Paycheck Protection Program Extension Act of 2021 (PPPEA) (Public Law 117-6). Please see www.deloitte.com/about to learn more about our global network of member firms. Podcast: Should borrowers submit PPP loan forgiveness applications early? %PDF-1.6 % You can outsource cybersecurity, but you can't outsource your risks. Learn how were making the game more inclusive for all. Who should lead the charge? 1577, 2019-2020 REG. & TAX. %%EOF The agreement provides an additional $24 million for financial assistance and services through Housing for the Harvest a program providing support for agricultural workers who have to quarantine due to COVID-19. YjFhOWM4Y2FkNDM3NWJjM2ZmZjE2YmFmNjhlNjc3MDJjM2Q3NjJhMmE1NDgz See how. Onlyagross receiptsreduction inone quarterin2020mustmeet this25%thresholdtoqualifyforthe PPP loan expense deduction, assuming the entity is notpublicly traded. The agreement also provides $20 million to reengage students who have either left their community college studies because of the pandemic or to engage students at risk of leaving. 297 0 obj <>/Filter/FlateDecode/ID[<681772630396424DB877BF5F6FFE419B>]/Index[276 36]/Info 275 0 R/Length 98/Prev 155748/Root 277 0 R/Size 312/Type/XRef/W[1 2 1]>>stream Now, your competitors are following an automation roadmap to save work and weather economic turbulence. 13 See I.R.C. Those processing fees gave BofA an incentive to increase the size of PPP loans, according to the small businesses that are suing the $3.05 trillion-asset bank. Fullwidth SCC. We strive to provide a website that is easy to use and understand. %%EOF Y2VmMzUxZjkwZWU4YmYxYWRhYTJlNWMyOTM4MTQ2NGI4MThhNDBmOGNjNmY3 The authors of this alert would like to acknowledge the contributions of Lauren Kim to the drafting process. This will bring conformity to the federal treatment of PPP loan forgiveness and EIDL grants, with one important exception relating to reduction in gross receipts in the 2019-2020 taxable year. Watch industry leaders discuss advice on innovation. Combined, the agreement represents a total of 5.7 million payments to low-income Californians. If you have questions regarding A.B. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code. CalFresh Student Outreach and Application Assistance. Our response tackles the human and the economic impacts of COVID in a way that echoes President Bidens American Rescue Plan and will help those who are hurting most. People are having a hard time making ends meet. Consult with a translator for official business. ZmE2MjY1MzQ2MjA0N2IxZDNmNTlhNjdhMDU1ZmY2NjQwYjZiMDRlZDRkZTBm A.B. A diversity, equity and inclusion video series. Proc. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. 1 A.B. The web pages currently in English on the FTB website are the official and accurate source for tax information and services we provide. MzZiNmY3MzJiY2FhODEyYjI2YzU5MzE4ZWE1NTYxNjAxZmVkNTg1ZjYyYzVh If you have any questions related to the information contained in the translation, refer to the English version. Otherwise . NDZkZjRjZDY4ODVjMjk3OGE5MjViODBjYjExOTliZWFhNzgwY2FjMTkzYjll The agreement provides for two years of fee relief for roughly 59,000 restaurants and bars licensed through the states Department of Alcoholic Beverage Control that can range annually from $455 to $1,235. GTIL refers to Grant Thornton International Ltd (GTIL). All rights reserved. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. GTIL and each member firm of GTIL is a separate legal entity. MzA5NDZkYmY0ZWFjYTU3MzIyNjAzOGFiNmVmZGQxMTc2MGUxN2VkYTMxNTZi We are excited to finally have clarity on Californias PPP loan forgiveness stance. California law excludes PPP loans forgiven under the CARES Act from gross income has been saved, California law excludes PPP loans forgiven under the CARES Act from gross income has been removed, An Article Titled California law excludes PPP loans forgiven under the CARES Act from gross income already exists in Saved items. SESS., 1 (see new CRTC 17131.8(c)), 2 (see new CRTC 24308.6(c)). Not-for-profit organizations and higher education institutions, Transportation, logistics, warehousing and distribution, Operation and organizational transformation, Blockchain, digital assets & Web3 solutions, Do not sell/share my personal information. The path to quality loyalty programs begins with adopting the right analytics looking deeper into customer purchase patterns to uncover true trends. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. The owner of this site is using Wordfence to manage access to their site. The agreement reflects a four-fold increase from $500 million to more than $2 billion for grants up to $25,000 for small businesses impacted by the pandemic, and also allocates $50 million for cultural institutions. 1557 to provide some relief.6, On March 27, 2020, the federal government enacted the CARES Act in response to the COVID-19 pandemic.7 Sections 1102 and 1106 of the CARES Act amend section 7(a) of the Small Business Act to create the PPP, through which up to $349 billion in funding was provided to businesses through federally guaranteed loans. 2020-27. 116-136, 1105(i). PPP Loan Forgiveness for Borrowers International China Practice India Practice Latin America Practice Consulting Technology Risk & IT Compliance Strategy & Operations Transactions Specialty Technology Automation Data Analytics & BI Development & Integration Enterprise Systems Technology Products Technology Strategy Automation ODU0M2JiMTQ1YmRhYjQ5Yjc2ZWQzNTA3Mjc4MDM1OWI3N2RmYmE4YjEzZTI3 ZmU1YzEwNzA1MTAyYzc0ODZiODFlZjZkNTUzYmQ2YzFmNmVlOTA2M2JlM2Y3 If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. 116-136. The PPPEA was enacted on March 30, 2021 and extended the covered period of the PPP from March 31, 2021, through June 30, 2021. This material may not be applicable to, or suitable for, the readers specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Copyright 2023 BDO USA LLP. 80 has been satisfied to avoid being classified as an ineligible entity.. 636(a)(37)(A)(iv)(I)(bb). 1577 and how these changes impact their California tax liabilities. 1577, 1-3 (stating that [t]his act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect). REV. :D 8 There have been a few different rounds of applications, and of course, the program is complex as businesses must be fully clear about inclusion/exclusions and how forgiveness and/or repayment terms work. hVkkF+qe6 Al+vji"3{gYiSZ2e):t z$/=N,zG&F0ihH&h jucN^#VBOZ.fY+n?1o%?}j-]drM5~j?oZQ~|f)?gV~R,.jz2,QzOu"JY[#M}K3_OO^6b^,#lYu7O. 21-17) does not apply to either first- or second-draw loans received after March 31, 2021. Dana is based in San Jose, California. MWRkNGI5MjIxZWY4NWUwMzU3N2Y0MDFmODQ1ZmQzMjliYzI1YWJjM2E3OGU2 Companies must focus on attracting and retaining talent, modernizing HR to serve new business needs while becoming more efficient. National Tax Office Leader. On April 29, 2021 Governor Newsom signed California A.B. Connecting with our core purpose through a renewed lens. (CAL. Matt Tierney and Andre Bourgon from Grant Thornton discuss how to execute a winning ecosystem strategy to manage insurance companies. Digs with Dignity is on a mission to provide those transitioning from homelessness with custom, fully furnished living spaces that feel like home. MDNjMzZlZmIzYWQ3NjYxMjhiZjg0Y2U1MzE0MjUyMjBhNWEwMzJlYzUwZjc0 Generated by Wordfence at Sat, 4 Mar 2023 17:56:41 GMT.Your computer's time: document.write(new Date().toUTCString());. AB 80 uses the same 25% gross reduction threshold qualification that was used for second draw PPP loans. section 1106 of the CARES Act for forgiveness of the covered loan. Golf is better when were all playing together. 80 generally allows for the deductibility of such expenses in years beginning on or after Jan. 1, 2019, provided the taxpayer is not an ineligible entity.9 The legislation defines an ineligible entity as any publicly-traded company, or any entity that does not meet the 25% reduction in gross receipts requirements of 15 U.S.C. MGI4ODNkMGY5N2YxNzFmNjdlOWM5ZDYzNjFiMDIzZmZmMTNlMWUzMTg2NWEy 117-6). In addition, the agreement provides a $600 one-time payment to taxpayers with Individual Tax Identification Numbers (ITINs) who were precluded from receiving the $1,200 per person federal payments issues last spring and the more recent $600 federal payments. The Multistate Tax alert archive includes external tax alerts issued byDeloitte Tax LLP's Multistate Tax practiceduring the last three years. 116-260. SESS. Podcast: Critical new considerations for September 15 estimated tax payments. 12 CAL. California conforms to the federal gross receipts test requiring a 25% or greater reduction in gross receipts and will therefore follow the rationale of this related federal guidance. M2EzM2JjMzhiMzQ0OGJhZjM2Y2YwYzkiLCJzaWduYXR1cmUiOiIzZWNjNmEy Ultimately, this will make tax planning for 2021 essential if a business received loan forgiveness during the year, as this nonconformity was not anticipated. Explore Deloitte University like never before through a cinematic movie trailer and films of popular locations throughout Deloitte University. However, California disallows a credit or deduction for Loan Forgiveness Eligible Expenses to the extent of the Forgiven Loan Amount. Due to the timing of A.B. The ARPA expanded the PPP to include certain nonprofit entities and certain internet publishing organizations. Immediate Relief for Small BusinessesQuadrupled. MTQ4MmJiZjg5ZGY5MWQyZDU2ZmFiZDM1ZmZmZjkyM2E3MDRkYmViZTViM2Yz Executives are advised to pay special attention to emerging trends that will shape how boards and investors talk about ESG in 2021. Businesses are struggling. 80s gross income exclusion also extends to any Economic Injury Disaster Loan (EIDL) advance grants received under the CARES Act and the CAA.12, Though enacted later than many taxpayers would have liked, A.B. The SBA offered banks, and later fintech companies, processing fees based on the size of loans, which ranged from 5% for loans of $350,000 or less to 1% for loans of $2 million. For California purposes, forgiven PPP loans, SVO grants, and RRF grants are excluded from gross income. People are hungry and hurting, and businesses our communities have loved for decades are at risk of closing their doors. 1577, 2019-2020 REG. Together with PitchBook, we give you the focused insights to take advantage of the trends. Osborne Rincon CPAs | 79245 Corporate Centre Drive, La Quinta, CA 92253 | 760-777-9805 | Copyright 2018 Osborne Rincon. However, they were amended to apply to taxable years beginning on or after January 1, 2019. 80 is not a complete conformity bill, and there are some key distinctions to be made from the federal treatment of PPP loans. Automation used to be a possibility a goal for the future. The agreement provides roughly $6 million to support outreach and application assistance to University of California, California State University and California Community College students made newly eligible for CalFresh the state-administered federal program for supplemental food assistance. 162, 163; CAL. Californians have been hurting. California law does not conform to this expansion of PPP eligibility. The agreement broadens this initial plan and now provides direct relief to more lower-income Californians through a $600 one-time grant to households enrolled in the CalWORKS program and recipients of SSI/SSP and Cash Assistance Program for Immigrants (CAPI). Gavin Newsom signed Assembly Bill 80 (AB 80), which generally conforms to the federal income tax treatment of Paycheck Protection Program (PPP) loan forgiveness and of the deductibility of expenses paid with a PPP loan that is forgiven, with a notable exception. ITIN taxpayers who also qualify for the California EITC would receive a total of $1,200. NWE3NWRjN2NhODFhNjkyOWNiYzZhZWJjN2U5M2FhYjEzNTQ3YTVhMDA5MzNi Sec. PPP Forgiveness: Urgent News About Nonconformity in California, Key Tax Credits Have Expired: What This Could Mean for You, 79245 Corporate Centre Drive, La Quinta, CA 92253. California law excludes PPP loans forgiven under the CARES Act from gross income, Telecommunications, Media & Entertainment, Background on federal legislation relating to the PPP, Overview of notable changes under A.B. Additional Aid for Individuals and Families. 80, deductions for expenses paid using PPP loan proceeds are allowed even when the loan is forgiven provided the taxpayer is not an ineligible entity. Under the legislation, an ineligible entity is a taxpayer that either: (i) is a publicly-traded company; or (ii) does not experience a 25% reduction in gross receipts in an applicable quarter of 2020 as compared to the same quarter in 2019.2, The PPP was created as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provides forgivable business loans when the recipient meets certain eligibility criteria.3 Under the PPP, qualifying borrowers can apply to have some (or all) of their loan forgiven to the extent it was used for certain expenses such as rent, utilities, mortgage payments, and employee payroll. Additionally, A.B. Manufacturers need a two-pronged approach to manage risks. 80s partial conformity to the federal treatment of expenses paid with forgiven PPP loan proceeds is welcome news that generally alleviates an otherwise burdensome federal conformity issue. 265 disallows deductions related to tax-exempt income. The 2023 BDO CFO Outlook Survey offers critical insights to support strategic decision-making and help your company thrive. NDQyOTJlYTVmOTZkMzNjMTFiNDZlY2VjNjdlMmViOTViNWVlZmRkMzIyZWNl 1577 added new corporate and income tax statutes providing that [a]ny credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.8, A.B. California has NOT passed AB 80: the PPP forgiveness bill March 9, 2021 AB 80, the bill that would allow up to $150,000 of expenses to be deducted if paid with PPP forgiven loan amounts has not yet passed. AB 80 generally conforms to the federal treatment of PPP loan forgiveness and EIDL grants, with one major exception. Other special rules in the federal statute apply to entities that were not in business for the entirety of 2019. Exceptional organizations are led by a purpose. For taxpayers other than ineligible entities, A.B. This tax treatment would also extend to the Economic Injury Disaster Loans as well. 61; CAL. N2QwYTc0NzQ2ZDg0NGM3YzhhYTM2YWM5N2IwZWUzODM5NzI2OTlkODM5M2Q5 Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. 80 amends California law to operate more consistently with the federal CAA regarding the permissibility of deductions for expenses paid with forgiven PPP loan proceeds. Retroactively effectivefor tax years beginning on or after January 1, 2019,AB 80allowsindividuals andbusinesses todeductcoveredexpenses paid for with forgivenPPPloansorEIDLadvances and targeted grantsreceived under theCARES Act and the CAA. The California Franchise Tax Board (FTB) plans to issueguidanceexplainingqualification and other requirements with respect to AB 80, and it is expected to include guidance for taxpayers that have already filed 2020 California individual or corporate tax returns. & TAX CODE 24271. When policy shifts, our insights and analysis can help you plan and respond. If you claimed a deduction that you do not qualify for, you must file an amended return using our normal amended return procedures. NGQ1ZTQ2MjVlYTI2YTE3N2M5NzQ3NmNkNjNkMTc3M2JhZDE5OTA1OWZkYjc2 Acting Governor Eleni Kounalakis Signs Legislation to Support States COVID-19 Preparedness, PHOTOS: Governor Newsom Visits Diablo Canyon Power Plant, More Time to File State Taxes for Californians Impacted by December and January Winter Storms, Governor Newsom on Read Across America Day: While Other States Ban Books, Were Helping Students Read, Governor Newsom Proclaims State of Emergency in 13 Counties Due to Winter Storms, Activates California Guard. This isnt the tech you know. YjRjOWE1NzUwNDNiNTkxY2NkYmRhODRjM2M0MzBiOWQwNjYwZjIyNDQ3NTEw More than 750,000 PPP loans were taken out by California small businesses. endstream endobj startxref NmIyYjY1ZGFjODY4OTViMmNkMGJiYjAzM2JjYTBhMDJhZDYyYThmNTg3Yjcw How does ESG fit into business strategy? hbbd```b``Z " e1} Dl` ,r`BD* - hcHh]bo O>? By: Pedro T. Rincon, CVA, Partner Osborne Rincon CPAs. A medical researcher accelerated purchases by 45% with a new tech implementation plan. CODE 17131.8(b); 24308.6(b), as amended by A.B. The agreement also provides $12 million in state funds to support associated county administrative workload. Credit: Spidell Tax, Analysis, and Education, 200 West Roseburg Avenue DTTL and each of its member firms are legally separate and independent entities. Y2ZjZmQ1NzgyYTlkZmE1NGZmOTRmOTU2ZWE5M2Y5OWRlZTY2NTU3M2QxNmJh 1577 which had previously denied the deductibility of expenses paid with forgiven PPP loan proceeds. 102-1125) on February 3, 2023, that makes significant enhancements to a variety of Illinois credit and incentive programs. 636(a)(37)(A)(iv)(I)(bb). 1 A.B. Scott Smith, State & Local Tax, National Technical Practice Leader, Business Restructuring & Turnaround Services, Total Tax Transparency & ESG Tax Strategy, Financial Institutions & Specialty Finance, California: Update to Paycheck Protection Program Loan Conformity, Do Not Sell My Personal Information as to BDO Investigative Due Diligence. At Deloitte, our purpose is to make an impact that matters by creating trust and confidence in a more equitable society. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons. 1577) into law. Our NFT Playbook is a roadmap to addressing IP rights, business infrastructure and risk for media & entertainment companies and others. Private company boards should bring the backgrounds and insights to understand risks and opportunities and drive the business forward. Governor Gavin Newsom has signed Assembly Bill 80, to amend the law. Taxpayers that have received PPP loans should consult with their California tax advisors regarding the changes made by A.B. 1557 generally conforms California to federal law allowing an exclusion from gross income for covered Paycheck Protection Program (PPP) loans that are forgiven as a part of the federal Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). CFOs are more optimistic about the U.S. economy, according to Grant Thorntons 2022 Q4 survey, as they push for growth while being judicious about costs. The fourth quarter of 2020 and 2019 only becomes a measure in this test if taxpayers submit their PPP loan application on or after January 1, 2021. 4 See P.L. Gavin Newsom signed Assembly Bill 80 (A.B. ZmEwMjJhMjJhYSJ9 Assembly Floor Analysis for A.B. You can count on us to prioritize and complete work to the best of our ability based on these changes. 116-136. Principal, SALT Services Access from your area has been temporarily limited for security reasons. Credit: Spidell Tax, Analysis, and Education Go Back Print. & TAX CODE 24344; 24344.5; 24344.7. Any differences created in the translation are not binding on the FTB and have no legal effect for compliance or enforcement purposes. The agreement also reflects fee relief for more than 600,000 barbering and cosmetology individuals and businesses licensed through the Department of Consumer Affairs. These loans are not forgivable. Taxpayers that have already filed their 2019 and 2020 returns should consider amending these returns to incorporate the adjustments allowed by AB 80. No Results Found. Our goal is to provide a good web experience for all visitors. MWFlZjU2ZDU1ZTQzYjZkMGVlNWYwYmRlOWI5MDdmZWZiNGE1OTMwZWRkY2Rj A sign calling for student loan debt relief is seen in front of the Supreme Court as the justices are scheduled to hear oral arguments in two cases involving President Joe Biden's bid to reinstate . Here are key facts about the PPP forgiveness process and how it impacts business owners owing less than $50,000. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code. (HTTP response code 503). 116-139, the Enhancement Act).8 The federal government also enacted the Paycheck Protection Program Flexibility Act (P.L. 2023 Grant Thornton LLP - Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. If you do not qualify for deductions under AB 80, California follows the Rev. 17 (A.B. Podcast: New hiring credit enacted for small businesses. If you have additional questions about this article or your business qualification status, contact your GC accountant or email us at contactus@gccpas.net. 18 A.B. SBA Forgiveness Portal. 162 and 163) will be disallowed to the extent PPP loan proceeds are ultimately forgiven.5 Later in 2020, the IRS issued Revenue Ruling 2020-27 further explaining that taxpayers cannot deduct expenses paid with PPP loan proceeds if the taxpayer reasonably expects forgiveness of the covered loan regardless of the year when forgiveness occurs. Taxpayers that have received PPP loans should consult with their California tax advisors regarding the changes made by A.B. 7 For additional details relating to the federal CARES Act and subsequent legislations relating to the PPP, please refer to the Deloitte Heads Up, Volume 27, Issue 8, Highlights of the CARES Act, updated September 18, 2020 (available here). If youd like to discuss tax implications that may be facing your business, contact Osborne Rincon at (760) 777-9805. When addressing the new expectations of your workforce, speed is a key factor. For a complete listing of the FTBs official Spanish pages, visit La esta pagina en Espanol (Spanish home page). The 25% gross receipts limitation does not apply to the EIDL advance grants, so taxpayers may exclude the EIDL grants and may fully deduct these expenses even if they dont meet the threshold reduction. Find out how the technology, banking and asset management sectors are adapting their strategies to handle todays threats. 250 0 obj <>stream Furthermore, to the extent a taxpayer is an ineligible entity, it may be faced with difficult questions regarding how to treat deductions for expenses paid in 2020 that later become disallowed upon loan forgiveness occurring in a different tax year (e.g., the expense occurs in 2020 but becomes disallowed upon PPP loan forgiveness occurring in 2021). YWFjZWQ2YzBhMWI1ZWY2ZDgwYmYxYzVmNDY5OTYxYTNkOTUyMTJlNzk0YTZk Banks face new challenges on regulation, ESG, mortgages, digital assets, audit, tax or digital transformation in 2022. GTIL is a nonpracticing umbrella entity organized as a private company limited by guarantee incorporated in England and Wales. 17 A.B. MWZiNjQ1YjdmYjEyZDUzZDUyNTVjODI0OGMzN2YyM2YxMWYxNGNmYTA3Yzk2 If this reduction threshold is not met, the expenses cannot be deducted on the California tax return. By showing up as I am, Im elevating my career. 5 IRC Sec. We understand you. This measure is part of Californias effort to recover now that the pandemic is easing, state restrictions are lifting, and businesses are moving back towards full operations. On September 9, 2020, Californias Governor Newsom signed Assembly Bill 1577 (A.B. 80), Laws 2021. SACRAMENTO Governor Gavin Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon today announced that they have reached an agreement on a package of immediate actions that will speed needed relief to individuals, families and businesses suffering the most significant economic hardship from the COVID-19 Recession. NmIyNjRmZjA0MDdkNzU5Y2IwOGU3MjMzZTk5MTBkNmQwYTY0OTQ3YTg3ODc1 Mjg2ZDhmNTczMDFhNjc3MjY1YjcxNGU5YjlmODg2YzdmYjUyOWIyNjQ1Njhj According to the legislative analysis, this date was changed to ensure that all fiscal year filers are captured. Do not include Social Security numbers or any personal or confidential information. Joshua Josh is a State and Local Tax (SALT) Principal in the San Francisco office of Grant Thornton LLP. ~A=.d XmtLY RLqg! U KServicing stated they were 1.) 80, some California taxpayers may have either filed their 2020 returns prior to its enactment, or made an extension payment based on the provisions of A.B. No calculations required. Find out how to manage the business risks behind data. You can count on us to prioritize and complete work to the best of our ability based on these changes. To help guide planning, weve highlighted key topics under focus from regulators worldwide and what those developments could mean for business. Your ERM needs to cover new gaps and drive new value. eligibility) criteria for receiving a second draw PPP loan for federal income tax purposes under the CAA.13 Although this requirement only applied to second draw PPP loans for federal income tax purposes, it appears to be incorporated as a general limitation for California purposes when determining whether a taxpayer is classified as an ineligible entity under A.B. On September 29, 2022, AB 158 was enacted to add an operative date of January 1, 2019 for the PPPEA to ensure taxpayers that had loans made during PPPEA would be eligible for the income exclusion and other applicable tax treatment. As a result, it provided no California tax relief for fiscal year taxpayers whose tax year began before January 1, 2020, but who obtained a PPP loan after January 1, 2020.