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PA Provides PPP Tax Relief, COVID Business Grants

Posted by Concannon Miller on Mon, Feb 8, 2021

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PA Provides PPP Tax Relief, COVID Business GrantsPennsylvania has approved legislation clarifying tax rules on PPP loans and also providing $912 million in COVID relief aid.

The legislation, approved Friday, clarifies that Paycheck Protection Program loans that are forgiven are not taxable in Pennsylvania and that businesses may deduct eligible expenses paid with PPP loan proceeds. This aligns Pennsylvania’s PPP rules with federal rules approved in December and is very beneficial to businesses and individuals with PPP loans.

The COVID relief aid includes $145 million for the hard-hit hospitality industry. The money would be available through counties in grants of up to $50,000 for bars, restaurants and hotels with under 300 employees.

Most of the relief aid – $570 million – will be sent to counties based on population to help people struggling to pay rent or utilities. Both landlords and tenants would be eligible to apply.

The remaining $197 million will go to private schools and other educational institutions that did not receive funding from the federal coronavirus aid for public schools and charter schools.

Have questions about PPP taxability or deductions? Please contact us for personalized assistance.

Topics: Business tax planning, 2020 Coronavirus

Concannon Miller’s unique, holistic and intimate approach to financial health sets us apart from smaller CPA firms with more limited resources as well as mega firms where mid-sized clients struggle for attention. Contact us here to talk about improving your business.

This communication is designed to provide accurate and authoritative information in regard to the subject matter covered at the time it was published. However, the general information herein is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purposes of avoiding tax penalties.

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