California Largely (But Not Fully) Conforms to Deductibility of Expenses Paid with Forgiven PPP Loans

On April 29, 2021 Governor Newsom signed California A.B. 80, largely conforming to Federal rules relating to deductibility of expenses paid with funds from forgiven Paycheck Protection Program (PPP) loans. The $150,000 limitation in prior versions of A.B. 80 was removed, and replaced with a requirement that only non-publicly traded companies who reported losses of at least 25% in gross receipts during one quarter of 2020 can deduct such expenses......
By: Sheppard Mullin Richter & Hampton LLP

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