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California taxes on Paycheck Protection Program (PPP) funds? Maybe not. 

The California saga for taxing Paycheck Protection Program funds continues.

The ever-changing landscape for how California will or won’t tax a business’s Paycheck Protection Program (PPP) funds continues to resemble a game of ping pong.

First, California lawmakers were clear they would tax the proceeds (by not allowing deductions paid with the funds). Then, as the political blow back about taking that position arose quickly, lawmakers proposed several pieces of legislation to partially change course.

It's here... well almost here, Congress has passed pandemic economic relief bill

Just before midnight last night Congress overwhelmingly passed legislation – the Consolidated Appropriations Act, 2021 – to both fund the continued regular running of the federal government and to provide additional economic help to both individuals and businesses affected by the current pandemic (https://docs.house.gov/billsthisweek/20201221/BILLS-116HR133SA-RCP-116-68.pdf). While the legislation has not been signed into law at the time of this writing, it is expected that the President will sign the Act.

The Act provides for a new round of Paycheck Protection Program (PPP) funding, makes Sec. 501(c)(6) not-for-profit organizations (Chambers of Commerce, trade associations, etc.) eligible for loans for the first time, offers businesses facing severe revenue reductions the opportunity to apply for a second loan and gives expanded PPP assistance to many hospitality businesses including hotels and restaurants.