Budget Amendment Gives Companies More Time to Pay Tax on PPP loans

House Speaker K. Joseph Shekarchi announced that the budget to be considered on the House floor will contain an amendment to provide more time for companies to make payments for state taxation of Paycheck Protection Program (PPP) loans.

Companies that profited from loans in excess of $250,000 are subject to state taxation. In the amendment to be offered today, those companies that would be taxed have until March 31, 2022 to provide interest-free payment on their 2020 forgivable loans. Ninety-three percent of loan recipients will not be taxed.

“We realize that these companies must file amendments to their tax returns for the 2020 loans, so we are giving them nine additional months to pay the state tax without penalty or interest,” said Speaker Shekarchi. “The money that is budgeted for the state tax is booked for the upcoming fiscal year, so there is no need for businesses to rush to amend their tax returns.”