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80 amends California law to operate more consistently with the federal CAA regarding the permissibility of deductions for expenses paid with forgiven PPP loan proceeds. 297 0 obj <>/Filter/FlateDecode/ID[<681772630396424DB877BF5F6FFE419B>]/Index[276 36]/Info 275 0 R/Length 98/Prev 155748/Root 277 0 R/Size 312/Type/XRef/W[1 2 1]>>stream We cannot guarantee the accuracy of this translation and shall not be liable for any inaccurate information or changes in the page layout resulting from the translation application tool. On April 29, California Gov. 0 The COVID-19 is having a huge impact on the global economy, with manufacturers and the travel industry bearing the initial brunt as the impact expands. Separately, the Governor and legislative leaders said that discussions are continuing on measures for the safe reopening of the states K-12 schools, including strategies to address learning loss caused by the pandemic. The potential is great what to know before taking action. Taxpayers that have received PPP loans should consult with their California tax advisors regarding the changes made by A.B. 116-142, the Flexibility Act) to, among other things, modify certain restrictions imposed in regulations issued by the Small Business Administration (SBA) relating to qualifications for forgiveness of PPP loans.9 Administered by the SBA and overseen by the US Treasury Department, the PPP is designed to provide short-term relief to millions of Americas businesses to ensure they can sustain operations and keep their workers employed as the economy recovers.10, The PPP allows qualifying businesses to apply for a loan to maintain their payroll and some overhead expenses through the period of emergency.11 If a business takes a loan under the PPP, it may apply to have some or all of the loan forgiven (the Forgiven Loan Amount)specifically that portion of the PPP loan used to cover payroll costs, interest on mortgage obligations, rent obligations, and utility payments, subject to specific conditions and during the 24 week period after the loan is distributed (the Loan Forgiveness Eligible Expenses).12 Generally, federal and California law treat the cancellation of debt as gross income.13 However, the CARES Act excludes the Forgiven Loan Amount from gross income for federal tax purposes.14 Additionally, for federal and California tax purposes, certain business expenses may be deducted such as those under IRC sections 162 or 163.15 The Internal Revenue Service, however, issued Notice 2020-32 clarifying that deductions otherwise allowable under any provision of the IRC, including sections 162 and 163, are not allowed to the extent of the Forgiven Loan Amount.16. All businesses that took out loans of $150,000 or less would be able to maximize their deduction for state purposes. Y2VmMzUxZjkwZWU4YmYxYWRhYTJlNWMyOTM4MTQ2NGI4MThhNDBmOGNjNmY3 1577 attempted to do, A.B. 1577, and provides some taxpayer considerations. Who should lead the charge? Credit: Spidell Tax, Analysis, and Education Go Back Print. 80 is not a complete conformity bill, and there are some key distinctions to be made from the federal treatment of PPP loans. Spidell Publishing - one of California's leading continuing education organizations - is reporting that the PPP loan forgiveness exclusion enacted by AB 80 (Ch. To help guide planning, weve highlighted key topics under focus from regulators worldwide and what those developments could mean for business. It does not apply to SBA subsidies paid on SBA loans, Shuttered Venue Operator Grants, or Restaurant Revitalization Grants. A.B. These pages do not include the Google translation application. Credit: Spidell Tax, Analysis, and Education, 200 West Roseburg Avenue Furthermore, to the extent a taxpayer is an ineligible entity, it may be faced with difficult questions regarding how to treat deductions for expenses paid in 2020 that later become disallowed upon loan forgiveness occurring in a different tax year (e.g., the expense occurs in 2020 but becomes disallowed upon PPP loan forgiveness occurring in 2021). Joshua Josh is a State and Local Tax (SALT) Principal in the San Francisco office of Grant Thornton LLP. 21-17) does not apply to either first- or second-draw loans received after March 31, 2021. NmIyYjY1ZGFjODY4OTViMmNkMGJiYjAzM2JjYTBhMDJhZDYyYThmNTg3Yjcw (209) 527-4247 (fax). Due to the timing of A.B. Podcast: New hiring credit enacted for small businesses. This is important new information that needs to be shared with businesses immediately and it will likely come as a surprise to many. GTIL and each member firm of GTIL is a separate legal entity. Your ERM needs to cover new gaps and drive new value. B expects to apply to the lender for forgiveness of the covered loan in 2021. The documentation must clearly identify both of the reference quarters (if not using annual comparison), must This message will not be visible when page is activated. How we work matters as much as what we do. 11 See 15 U.S.C. Explore Deloitte University like never before through a cinematic movie trailer and films of popular locations throughout Deloitte University. Businesses are struggling. An additional $310 billion of PPP loan funding was subsequently provided by the federal Paycheck Protection Program and Health Care Enhancement Act (P.L. 162 and 163) will be disallowed to the extent PPP loan proceeds are ultimately forgiven.5 Later in 2020, the IRS issued Revenue Ruling 2020-27 further explaining that taxpayers cannot deduct expenses paid with PPP loan proceeds if the taxpayer reasonably expects forgiveness of the covered loan regardless of the year when forgiveness occurs. MmU1MjhmZWM1MzQxMzcyYmQyMmE2NGRlNTRlOGU3NDgxZjAyMDVlYmY2Mjk2 CODE 17131.8(g)(3); 24308.6(g)(3). If you have additional questions about this article or your business qualification status, contact your GC accountant or email us at contactus@gccpas.net. GTIL is a nonpracticing umbrella entity organized as a private company limited by guarantee incorporated in England and Wales. NWE3NWRjN2NhODFhNjkyOWNiYzZhZWJjN2U5M2FhYjEzNTQ3YTVhMDA5MzNi 636(a)(37)(A)(iv)(I)(bb). 80s partial conformity to the federal treatment of expenses paid with forgiven PPP loan proceeds is welcome news that generally alleviates an otherwise burdensome federal conformity issue. endstream endobj 212 0 obj <>/Pages 210 0 R/StructTreeRoot 12 0 R/Type/Catalog/ViewerPreferences 230 0 R>> endobj 213 0 obj <>/MediaBox[0 0 612.12 792.12]/Parent 210 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 214 0 obj <>stream You can outsource cybersecurity, but you can't outsource your risks. 80, California Assembly, April 15, 2021. hVkkF+qe6 Al+vji"3{gYiSZ2e):t z$/=N,zG&F0ihH&h jucN^#VBOZ.fY+n?1o%?}j-]drM5~j?oZQ~|f)?gV~R,.jz2,QzOu"JY[#M}K3_OO^6b^,#lYu7O. The new legislation supersedes AB 1577. This measure is part of Californias effort to recover now that the pandemic is easing, state restrictions are lifting, and businesses are moving back towards full operations. Rul. OTc5MjdiOWVmNjcwMzYzYTRjZjhmOWI1YmQzZDczMDNkYzZmYjk2Mzk2ZWJi We are at a critical moment, and Im proud we were able to come together to get Californians some needed relief.. 9 Note that the statutes originally applied to taxable years beginning on and after January 1, 2020. Taxpayers that have already filed their 2019 and 2020 returns should consider amending these returns to incorporate the adjustments allowed by AB 80. (HTTP response code 503). Dana Lance is the Tax Practice Leader for the Greater Bay Area and the SALT Practice Leader for the West Region. The 2023 BDO CFO Outlook Survey offers critical insights to support strategic decision-making and help your company thrive. If you are a WordPress user with administrative privileges on this site, please enter your email address in the box below and click "Send". Specifically, A.B. On April 29, 2021 Governor Newsom signed California A.B. and CTL purposes. The undersigned certify that, as of July 1, 2021 the internet website of the Franchise Tax Board is designed, developed and maintained to be in compliance with California Government Code Sections 7405 and 11135, and the Web Content Accessibility Guidelines 2.1, or a subsequent version, as of the date of certification, published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success criteria. 211 0 obj <> endobj (CAL. As we continue to fight the pandemic and recover, Im grateful for the Legislatures partnership to provide urgent relief and support for California families and small businesses where its needed most, said Governor Newsom. MWM2OTQ4NmFlOWMzMjAzOGE0OWFjNWI2NmU3ZmQ0MjU3Y2U0ZDcwMWMxYWU1 hb```b``V``e``[ ,@QR40 Mjy{zf9sUnhRn(=vl&G99I\@V7?$vt0Ft 0AU:\l0 c`\=H$X$BCA~'YlxH/t>x Digs with Dignity is on a mission to provide those transitioning from homelessness with custom, fully furnished living spaces that feel like home. The agreement would provide the $600 payments to households with ITINs and income below $75,000. These loans are not forgivable. It is worth noting that A.B. ZmE2MjY1MzQ2MjA0N2IxZDNmNTlhNjdhMDU1ZmY2NjQwYjZiMDRlZDRkZTBm Social login not available on Microsoft Edge browser at this time. You must pay it back within either 3 or 5 years. Together with PitchBook, we give you the focused insights to take advantage of the trends. Ultimately, this will make tax planning for 2021 essential if a business received loan forgiveness during the year, as this nonconformity was not anticipated. 2021-20 for federal purposes, we will follow the federal treatment for California tax purposes. & TAX CODE 17024.5(a); 23051.5(a). Answer: For a Second Draw PPP Loan amount of $150,000 or less, the borrower must provide documentation substantiating the reduction in gross receipts before or at the time the borrower seeks loan forgiveness (or upon SBA request). AB 80 generally conforms to the federal treatment of PPP loan forgiveness and EIDL grants, with one major exception. A medical researcher accelerated purchases by 45% with a new tech implementation plan. ZmU1YzEwNzA1MTAyYzc0ODZiODFlZjZkNTUzYmQ2YzFmNmVlOTA2M2JlM2Y3 In particular, Californias definition of an ineligible entity borrows its 25% diminution in gross receipts test from the qualification (i.e. To qualify for expense deductions, basis adjustments, and lack of reduction of tax attributes related to AB 80, you must meet the following qualifications. When policy shifts, our insights and analysis can help you plan and respond. Watch industry leaders discuss advice on innovation. Consult with a translator for official business. California taxpayers that have received PPP loans or EIDL advance grants will likely want to consider the new law when filing their 2020 California corporate and individual income tax returns. The agreement incorporates the Governors Golden State Stimulus plan to assist California households that have borne the disproportionate economic burden of the COVID-19 Recession those with incomes below $30,000, as well as those unfairly excluded from previous federal stimulus payments. Any differences created in the translation are not binding on the FTB and have no legal effect for compliance or enforcement purposes. Mjg2ZDhmNTczMDFhNjc3MjY1YjcxNGU5YjlmODg2YzdmYjUyOWIyNjQ1Njhj YjNiOTAxNmNjNzdiZTlhZGIxNjNmYmViOWVmYThmZWI3YTRmMzM0ZmZiNjBj Further, AB 1577 applied only to tax years beginning on or after January 1, 2020. ZGU2YzllYThlZmU0NDllMTQxZDgyMWZmZWNlNGNkNjliYzNkMjQyNTQ1YWFj A.B. 1577, 2019-2020 REG. We are excited to finally have clarity on California's PPP loan forgiveness stance. 7 Ch. However, they were amended to apply to taxable years beginning on or after January 1, 2019. Learn how were making the game more inclusive for all. the forgiveness of PPP loans. However, California disallows a credit or deduction for Loan Forgiveness Eligible Expenses to the extent of the Forgiven Loan Amount. LAW Section 1102 and 1106 of the CARES Act, established the PPP as a new loan program administered by the U.S. Small Business Administration (SBA) as part of its Ataxpayercannot combinetwo or more2020quarterly losses to arrive at thisthreshold. A.B. DTTL and each of its member firms are legally separate and independent entities. Golf is better when were all playing together. 4 CAL. If you claimed a deduction that you do not qualify for, you must file an amended return using our normal amended return procedures. We can harness the power of people, process, data and technology to transform your companys tax operating model into a strategic function of the business. N2Y5N2FjOGU2ZGVmZWI4MDRhNTg4NjNjZjgxYjA2MzBlYjU1MmMzNDY0NTY1 All rights reserved. Borrowers that need assistance or have questions should call the SBA at (877) 552-2692, Monday - Friday, 8 a.m. - 8 p.m. EST. Y2NjYmFmZTQyOGZhYjViZTYxMTQ0ODRiYWY5OGVkNzNlOWI1NWY0YzU0ZDVl hbbd``b`?`\@ "$@b Bq@S my S{.$4VP&F% 1FrO G This tax treatment would also extend to the Economic Injury Disaster Loans as well. SESS. 162, 163; CAL. 1 Ch. DTTL (also referred to as "Deloitte Global") does not provide services to clients. The PPPEA was enacted on March 30, 2021 and extended the covered period of the PPP from March 31, 2021, through June 30, 2021. ~A=.d XmtLY RLqg! U REV. M2EzM2JjMzhiMzQ0OGJhZjM2Y2YwYzkiLCJzaWduYXR1cmUiOiIzZWNjNmEy Rather than deny deductions for expenses paid with forgiven PPP loan proceeds as A.B. SESS., 1 (see new CRTC 17131.8(a)), 2 (see new CRTC 24308.6(a)). For forms and publications, visit the Forms and Publications search tool. 116-260. Certain services may not be available to attest clients under the rules and regulations of public accounting. As the forgiveness of a PPP loan is excluded from gross income, for LLCs, the amount of the forgiven PPP loan amount does not come within the meaning of "total income from all sources derived from or attributable to this state" and should not be included in the computation of the fee. Californians have been hurting. Because these loans are not considered covered loans as that term was defined when AB 80 was enacted, the forgiveness of these loans do not qualify for the California exclusion. In September 2020, California enacted AB 1577, which conformed to the CARES Act exclusion from gross income for PPP loan forgiveness. This is alyx our streamlined concierge-enabled platform that connects real problems with the right resources and real solutions. 5 INCOME TAXES: FEDERAL CARES ACT: GROSS INCOME: LOAN FORGIVENESS, JULY 8, 2020 (available here). The agreement provides $600 in one-time relief to households receiving the California EITC for 2020. document.write(new Date().getFullYear()) California Franchise Tax Board. 636(a)(37)(A)(iv)(I)(bb). NDQyOTJlYTVmOTZkMzNjMTFiNDZlY2VjNjdlMmViOTViNWVlZmRkMzIyZWNl The web pages currently in English on the FTB website are the official and accurate source for tax information and services we provide. 1577, 2019-2020 REG. The agreement also provides $12 million in state funds to support associated county administrative workload. Find out how to manage the business risks behind data. Our response tackles the human and the economic impacts of COVID in a way that echoes President Bidens American Rescue Plan and will help those who are hurting most. Don't let tax be the only deciding factor in your relocation. This isnt the tech you know. Osborne Rincon CPAs | 79245 Corporate Centre Drive, La Quinta, CA 92253 | 760-777-9805 | Copyright 2018 Osborne Rincon. Mr. Grossman specializes as a subject matter expert in California Corporation Income or Franchise Tax matters. In addition to these measures, the agreement provides tax relief for businesses, commits additional resources for critical child care services and funds emergency financial aid for community college students. These subsidies/grants are subject to California tax, but expenses are fully deductible on the California return. hbbd```b``Z " e1} Dl` ,r`BD* - hcHh]bo O>? 15 See e.g., I.R.C. 1577 added new corporate and income tax statutes providing that [a]ny credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.8, A.B. The agreement also partially conforms California tax law to new federal tax treatment for loans provided through the Paycheck Protection Plan, allowing companies to deduct up to $150,000 in expenses covered by the PPP loan. 2023 Grant Thornton LLP - Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. SESS., 1 (see new CRTC 17131.8(c)), 2 (see new CRTC 24308.6(c)). It is unclearhowbusinesses that changed entity types during 2020will apply2019 gross receiptstoqualify for the PPPexpense deduction. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons. & TAX CODE 24271. The agreement broadens this initial plan and now provides direct relief to more lower-income Californians through a $600 one-time grant to households enrolled in the CalWORKS program and recipients of SSI/SSP and Cash Assistance Program for Immigrants (CAPI). However,AB 80 does not permitanindividual owner or corporation that is anineligible entity to deduct PPP covered expenses. (209) 527-4247 (fax), https://www.grimbleby-coleman.com/resources/articles/265, 200 West Roseburg Avenue These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. Modesto, CA 95350, (209) 527-4220 (phone) Gavin Newsom signed Assembly Bill 80 (A.B. Onlyagross receiptsreduction inone quarterin2020mustmeet this25%thresholdtoqualifyforthe PPP loan expense deduction, assuming the entity is notpublicly traded. If your forgiven loan relates to an EIDL Grant or Targeted EIDL Advance, you are not required to meet these qualifications to deduct expenses. The fourth quarter of 2020 and 2019 only becomes a measure in this test if taxpayers submit their PPP loan application on or after January 1, 2021. Note that the citation to the federal law presumably should be 15 U.S.C. ODE0ZjA1OTZlMmYzNGViM2E4NWJiYTMwNzQ0N2I2YmVhZTE1MDVlNWJjOTJk If you have questions regarding A.B. Retroactively effectivefor tax years beginning on or after January 1, 2019,AB 80allowsindividuals andbusinesses todeductcoveredexpenses paid for with forgivenPPPloansorEIDLadvances and targeted grantsreceived under theCARES Act and the CAA. You can count on us to prioritize and complete work to the best of our ability based on these changes. Section 636(a)(37)(A)(iv)(bb), which requires the entity tohave experienced at least a 25% drop in gross receiptsinthe first, second or thirdquarter of 2020, or the fourth quarter if a PPP loan application was submitted on or after January 1, 2021,compared tothe same quarter in 2019. 16 See I.R.S. Ineligible entities are either publicly tradedcompanies orentities that do not meet the requirements of 15 U.S.C. & TAX. We are excited to finally have clarity on Californias PPP loan forgiveness stance. -----END REPORT-----. 1577 which had previously denied the deductibility of expenses paid with forgiven PPP loan proceeds. The new legislation supersedes AB 1577. . For a complete listing of the FTBs official Spanish pages, visit La esta pagina en Espanol (Spanish home page). Careful consideration will need to be given to these issues, as well as the need for documentation to support that the 25% diminution in gross receipts requirement of A.B. 61; CAL. MTU3YmNhZDYyNDc5ZTczNDMyNzc0ZjU1YTI3NWRlZjg3OWVkNGRiYjAzNjUz Specifically, the new law states that [a]ny credit or deduction otherwise allowed under this part [(Part 10 for the PITL and Part 11 for the CTL)] for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.19. 80. ZmEwMjJhMjJhYSJ9 To be eligible, businesses must have: Employed 50 or less full-time employees Had gross revenue of less than $5 million in 2019 If youd like to discuss tax implications that may be facing your business, contact Osborne Rincon at (760) 777-9805. Here are key facts about the PPP forgiveness process and how it impacts business owners owing less than $50,000. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. This content supports Grant Thornton LLPs marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. On September 9, 2020, Californias Governor Newsom signed Assembly Bill 1577 (A.B. 80), Laws 2021. For additional information, visit Section 311 of the CAA, 2021, Revenue and Taxation Code (RTC) section 17131.8(g)(3)), and Small Business Administration (SBA) guidance. Energy companies can get ahead with fiscal discipline, ESG disclosure preparation and attention to cybersecurity, 2022 Energy Symposium speakers say. The agreement also provides $20 million to reengage students who have either left their community college studies because of the pandemic or to engage students at risk of leaving. 116-136, 1105(i). Sec. The measure awaits the governor's signature. 2020-27. Be ready to demonstrate diligence for the FCPA. Principal, SALT Services If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. For California purposes, forgiven PPP loans, SVO grants, and RRF grants are excluded from gross income. The treatment of deductions, basis, and tax attributes for California income tax purposes may differ from the federal income tax treatment. These new provisions provide [f]or taxable years beginning on and after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to section 1106 of the [CARES Act], pursuant to the [Enhancement Act], or pursuant to the [Flexibility Act].17 For this purpose covered loan is defined as having the same meaning as in section 1106 of the [CARES Act].18 Thus, the Forgiven Loan Amount is not included in gross income for PITL or CTL purposes. Fill the form below and we'll contact you to schedule an appointment: Grimbleby ColemanCertifiedPublicAccountants,Inc. California Conforms to Federal PPP Loan Forgiveness Rules. NmIyNjRmZjA0MDdkNzU5Y2IwOGU3MjMzZTk5MTBkNmQwYTY0OTQ3YTg3ODc1 117-6). Shortly after enactment of the CARES Act, the Internal Revenue Service (IRS) issued Notice 2020-32 providing that deductions for business expenses otherwise allowable under the Internal Revenue Code (IRC) (e.g., deductions under IRC Secs. Taxpayers must have a 25% reduction in gross receipts in any 2020 calendar quarter as compared to the comparable 2019 calendar quarter in order to deduct expenses paid with PPP loan forgiven amounts. On February 9, 2022, Senate Bill (SB) 113 (Economic Relief) was enacted to allow an income exclusion for Shuttered Venue Operator (SVO) grants provided under CAA for tax years beginning on or after January 1, 2019 and for Restaurant Revitalization Fund (RRF) grants provided under ARPA for taxable years beginning on or after January 1, 2020. 229 0 obj <>/Filter/FlateDecode/ID[<53445A688FC0F84BB5871A6886EB3172>]/Index[211 40]/Length 93/Prev 93697/Root 212 0 R/Size 251/Type/XRef/W[1 3 1]>>stream If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. California Rebuilding Fund Small businesses may be eligible for a loan up to $100,000 from the California Rebuilding Fund. 13 See I.R.C. Under the express terms of the CARES Act, forgiven loan amounts are excluded from the borrowers gross income.4 Banks face new challenges on regulation, ESG, mortgages, digital assets, audit, tax or digital transformation in 2022. REV. endstream endobj startxref 116-136. On April 29, 2021, California Gov. endstream endobj 277 0 obj <. 265 disallows deductions related to tax-exempt income. 80 has been satisfied to avoid being classified as an ineligible entity.. You meet the 25% gross receipts reduction qualifications. When addressing the new expectations of your workforce, speed is a key factor. The California Franchise Tax Board (FTB) plans to issueguidanceexplainingqualification and other requirements with respect to AB 80, and it is expected to include guidance for taxpayers that have already filed 2020 California individual or corporate tax returns. This article provides an introduction to renewable energy tax credits and highlights several key factors that buyers and sellers of these credits should consider. -----BEGIN REPORT----- Not-for-profit organizations and higher education institutions, Transportation, logistics, warehousing and distribution, Operation and organizational transformation, Blockchain, digital assets & Web3 solutions, Do not sell/share my personal information. 1577. US affiliates to deem to elect waters edge, California legislature allows group returns for international business travelers. How to solve business problems and mitigate the risks, Make your transformation deliver on its promise. 1577, 1-3 (stating that [t]his act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect). On September 9, 2020, Assembly Bill (AB) 1577 (Coronavirus Aid, Relief, and Economic Security (CARES) Act Conformity) was enacted which allowed an income exclusion for tax years beginning on or after January 1, 2020, for forgiven PPP loans. From child care, relief for small business owners, direct cash support to individuals, financial aid for community college students and more, these actions are critical for millions of Californians who embody the resilience of the California spirit., Were nearly a year into this pandemic, and millions of Californians continue to feel the impact on their wallets and bottom lines. (%mu9YS-+e"D3mU3]3|.efah4Yi^=|jmMg16^2*5+Qh . Tax laws are ever-changing, which is why you need proficient tax professionals working with you and your business to ensure you are in compliance with the current tax laws. California aligning with fed PPP loan treatment. %PDF-1.7 % 1557 generally conforms California to federal law allowing an exclusion from gross income for covered Paycheck Protection Program (PPP) loans that are forgiven as a part of the federal Coronavirus Aid, Relief, and Economic . Our audits ensure confidence in our clients financial information. 17 A.B. Overview. The ARPA expanded the PPP to include certain nonprofit entities and certain internet publishing organizations. Private company boards should bring the backgrounds and insights to understand risks and opportunities and drive the business forward. NDEyZDM0YmQ2MzdjM2I1OTg1YmYxMTdhYzE2OWE5MWEyMjJkYTM5ZTg4ZjYw 6 See CALIFORNIA SENATE COMMITTEE ON GOVERNANCE AND FINANCE ANALYSIS, JULY 24, 2020 (available here); CALIFORNIA ASSEMBLY FLOOR ANALYSIS, AUG. 29, 2020. Grant Thornton LLP is a member firm of GTIL. Illinois Governor J.B. Pritzker signed new legislation (P.A. No calculations required. SACRAMENTO Governor Gavin Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon today announced that they have reached an agreement on a package of immediate actions that will speed needed relief to individuals, families and businesses suffering the most significant economic hardship from the COVID-19 Recession. On Sept. 9, 2020, which was after the IRS released Notice 2020-32 but before the CAA was signed, California enacted legislation, A.B. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. California has NOT passed AB 80: the PPP forgiveness bill March 9, 2021 AB 80, the bill that would allow up to $150,000 of expenses to be deducted if paid with PPP forgiven loan amounts has not yet passed. 1577), Laws 2020. If this reduction threshold is not met, the expenses cannot be deducted on the California tax return. PPP Forgiveness: Urgent News About Nonconformity in California, Key Tax Credits Have Expired: What This Could Mean for You, 79245 Corporate Centre Drive, La Quinta, CA 92253. x000K@4CgCGt@1: L%v5Fo- j-YW v 80, some California taxpayers may have either filed their 2020 returns prior to its enactment, or made an extension payment based on the provisions of A.B. People are having a hard time making ends meet. April 29, 2021 Governor Gavin Newsom has signed Assembly Bill 80, to amend the law. MzJiOWRiMDc3MWUyZjhhMGViZjEyNDFkNWI4MTg3ZTU3NWRmNjEzYWNjNmM4 80, gross receipts from the fourth quarter of 2020 may be compared to the fourth quarter of 2019 only with respect to an application submitted on or after Jan. 1, 2021. See 15 U.S.C.