Effective for taxable years beginning on or after January 1, 2020, repeals GS 105-130.5(a)(32) and GS 105-153.5(c2)(20), which require corporate and individual taxpayers to add to the taxpayer's adjusted gross income the amount of any expense deducted under the Internal Revenue Code to the extent that payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the federal CARES Act (governing the Payment Protection Program/PPP) and the income associated with the forgiveness is excluded from gross income pursuant to section 1106(i) of the CARES Act. Effective for taxable years beginning on or after January 1, 2021, these provisions are reenacted as they existed immediately before the repeal.
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AN ACT TO ELIMINATE THE ADDBACK FOR BUSINESS EXPENSES DEDUCTED TO THE EXTENT THE PAYMENT RESULTS IN FORGIVENESS OF A COVERED LOAN UNDER THE FEDERAL CARES ACT FOR THE 2020 TAXABLE YEAR ONLY.Intro. by Burgin, Corbin, Davis.
Status: Ref To Com On Rules and Operations of the Senate (Senate action) (Feb 18 2021)
Bill S 112 (2021-2022)Summary date: Feb 17 2021 - More information