States and the PPP: The Tax Policy Case for State Nondeductibility

Tax Notes State, January 11, 2021

7 Pages Posted: 17 Feb 2021

See all articles by Adam B. Thimmesch

Adam B. Thimmesch

University of Nebraska College of Law

Date Written: January 11, 2021

Abstract

This article is the second in a series evaluating the state tax aspects of the federal Paycheck Protection Program. The first article introduced the program and explained the potential effect on states if Congress were to change the law to allow taxpayers to deduct their PPP-funded expenses. This article continues that analysis and explores the tax policy reasons why states should prepare to deviate from federal law now that Congress has provided for PPP deductibility in its year-end COVID relief bill.

Keywords: tax law, tax policy, state tax, PPP, tax conformity

JEL Classification: K34

Suggested Citation

Thimmesch, Adam B., States and the PPP: The Tax Policy Case for State Nondeductibility (January 11, 2021). Tax Notes State, January 11, 2021, Available at SSRN: https://ssrn.com/abstract=3787046

Adam B. Thimmesch (Contact Author)

University of Nebraska College of Law ( email )

103 McCollum Hall
P.O. Box 830902
Lincoln, NE 68583-0902
United States

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