Kentucky Passes Law on PPP Loan Forgiveness
Janet Cooke CPA, Principal
On March 12, 2021, The Kentucky House concurred with the Senate changes on HB 278 which now awaits the Governor’s signature. The result of this legislation is that Kentucky tax treatment for the Paycheck Protection Program Loan (PPP) will now be the same as under Federal law. The PPP loan amount that is forgiven is excluded from Kentucky taxable income and the expenses paid with the loan are tax-deductible for Kentucky. The state will also follow the Federal treatment of the EIDL emergency grants and debt relief payments for certain SBA Loans in place as of March 27, 2020.
After the Governor signs the Bill, it will give Kentucky PPP loan recipients certainty as to their Kentucky tax obligations. Please contact your Strothman and Company representative to assist you with your PPP loan or any other tax matters.