This week, the Tax Foundation listed which states are taxing forgiven Paycheck Protection Program (PPP) loans – and which ones aren’t.
Count New Jersey as one the 38 states that is not now taxing forgiven PPP loans, as NJBIA had previously advocated for.
On Feb. 9, the Murphy administration announced New Jersey would follow the federal government’s lead in allowing PPP loans to be tax exempt at the state level. It also enabled recipients to deduct business expenses that were paid with the tax-exempt loan proceeds.
To see the national map compiled by the Tax Foundation, click here.