TEMP ALIGN PPP TREATMENT TO FEDERAL TREATMENT.

View NCGA Bill Details2021
House Bill 334 (Public) Filed Wednesday, March 17, 2021
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 AND 2021 TAXABLE YEARS AND TO EXCLUDE UNEMPLOYMENT COMPENSATION FROM STATE TAXABLE INCOME TO THE SAME EXTENT AS FEDERAL LAW.
Intro. by Pickett, Saine.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (Apr 26 2021)

SOG comments (1):

Long title change

House committee substitute to the 2nd edition changed the long title. Original title was 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.

H 334

Bill Summaries:

  • Summary date: Apr 20 2021 - More information

    House amendment makes the following changes to the 2nd edition.

    Changes the act's long title. 

    Changes the expiration of the proposed changes to the definition set forth for the defined term Code under GS 105-228.90(b)(7), now providing for expiration for taxable years beginning on or after January 1, 2022 (was, January 1, 2021).

    Effective for taxable years beginning on or after January 1, 2022 (was, January 1, 2021), reenacts 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, as they existed immediately before their repeal, as enacted and effective for taxable years beginning on or after January 1, 2020.

    Adds a new deduction to GS 105-153.5(b), allowing a taxpayer to deduct the amount excluded from the taxpayer's gross income for unemployment compensation received by the taxpayer under section 9042 of the American Rescue Plan Act of 2021, effective for taxable years beginning on or after January 1, 2020. 


  • Summary date: Mar 30 2021 - More information

    House committee substitute makes the following changes to the 1st edition.

    Adds the following. Modifies the definition set forth for the defined term Code under GS 105-228.90(b)(7) to provide a distinct definition for the purpose of the amount of any expense deducted under the Code (defined as the Internal Revenue Code as it existed as of May 1, 2020) 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, defining the term to mean the Internal Revenue Code as enacted as of January 1, 2021. Defines covered loan by federal statutory cross-reference to section 1106 of the CARES Act, to include certain small business loans under the Paycheck Protection Program/PPP. Effective for taxable years beginning on or after January 1, 2020, and expires for taxable years beginning on or after January 1, 2021.


  • Summary date: Mar 17 2021 - More information

    Identical to S 112, filed 2/17/21.

    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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