It’s important to remember, though, that states pass their own tax laws – some of which may or may not conform to the federal tax laws.
For instance, South Carolina is following the federal guidelines and will allow PPP loan expenses to be deductible. On the other hand, guidance from New Hampshire earlier this month indicates that it will not allow the PPP expenses to be deductible from state taxes.
We have a team at Antares Group that closely monitors tax law changes in the various states so that we can provide you the most accurate and up-to-date information. Earlier this fall, we provided clients who had received PPP loans multiple tax projections to account for whether or not the expenses would be deductible, along with other possibilities in the absence of clarity at that time about federal law.
Please contact our office if you have any questions about how your state’s laws will impact your 2020 taxes.
Zachary Collins, CPA, is a Senior on our Business & Tax Advisory Group. He can be reached at firstname.lastname@example.org.