After months of anticipation, Governor Newsom announced this week that California will conform with IRS regulations making deducibility of PPP Loans and EIDL Grants nontaxable. The bill, AB 80, took effect immediately after being signed by the governor, allowing deductions for California businesses that have experienced at least a 25% drop in gross receipts in one quarter of 2020 and are not publicly traded. With so many still struggling as a result of the pandemic, this tax relief is some good news that will help small businesses get back on their feet. If you have questions about what this means for you and your business, please let us know!
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