Paycheck Protection Program (PPP) Conformity Bill Amended
AB 80 was amended yesterday to a remove a provision that placed a $150,000 cap on the amount of business expenses paid for using forgiven PPP or EIDL funds that a California business can deduct.
Publicly traded companies are ineligible to deduct business expenses paid for with forgiven PPP or EIDL funds. Also ineligible are businesses that do not meet the reduction from the gross receipts requirements of the Consolidated Appropriations Act of 2021.
The bill has coauthors from both sides of the aisle and is very likely to pass with these new amendments. This is good news for EAs, since the new amendments will bring California state tax law into almost full conformity with the federal CARES Act.
It is still unclear when this bill will be signed into law, especially with policy committees in the Legislature trying to hear hundreds of bills before the April 30 deadline. However, there is some optimism that AB 80 will move quickly through committee and floor votes, and make its way to Governor Newsom’s desk sometime in the next two weeks.
We will continue to keep our Members apprised of any updates as they become available.
You can read the full amended bill text here