California will mirror the federal tax treatment of forgiven business loans that are part of the federal coronavirus relief law under a bill signed Wednesday by Gov. Gavin Newsom.
The new law signed by the Democratic governor took effect immediately. California doesn’t automatically mirror most federal tax law changes, so legislation is necessary for conformity with provisions of the CARES Act (Public Law 116-136).
- A.B. 1577 by Assemblywoman Autumn Burke (D) excludes from state income tax forgiven loans made through the federal Paycheck Protection Program.
- All or part of forgiven loans used for payroll and...