Senator Andreas Borgeas (R-Fresno) and Republican Senate Chairman Scott Wilk (R-Santa Clarita) issued a joint statement calling on the Sacramento leadership to incorporate the provisions of Senate Law 265, a much-needed move by Senator Borgeas Government Tax Break Provides COVID-19 Loan To Save Businesses And Protect Jobs On A Emergency Bill. Since today is the traditional tax deadline, the only way to relieve small businesses in good time is to immediately incorporate the provisions of Senate Law 265 into an emergency budget law.
Senate Bill 265 would waive California’s tax liability on the Paycheck Protection Program (PPP) loans to small businesses and nonprofits received by the federal government in 2020 and allow them to deduct expenses. Senate Bill 265, introduced by Senator Borgeas on Jan. 27, would ensure corporations would not be burdened with additional California taxes on federal government money to help mitigate the effects of the pandemic.
Last week, the U.S. Treasury Department provided clarifications and guidance on aspects of the recently passed federal aid package that will allow California to fully comply with federal tax laws and make PPP corporate borrowing costs FULLY tax deductible.
“Tax season is here and time is up,” said Senator Borgeas, author of SB 265. “Businesses need full PPP loan expenditure deductibility. So I ask the governor and lawmakers to include SB 265 in an emergency budget.” Invoice. This would give businesses the tax breaks they need now. “
“April 15th is our traditional tax day, but nothing has been done by lawmakers to address the potential tax liability of our small businesses and nonprofits on the loans they have received from the government. We have the money – they deserve our help. Let’s do that. Senate Republicans urge our colleagues to do the right thing and include the provisions of SB 265 in an early budget move, ”said Republican Senate Chairman Wilk.
About Republican Senate Leader Scott Wilk
Senator Wilk represents the 21st Senate District, which includes the Antilope, Santa Clarita, and Victor Valleys. Learn more about Scott by visiting his website and be sure to connect with him on social media.
The above article was published by the Republicans of the California Senate.
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