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.
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.
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