States and the PPP: The Tax Policy Case for State Nondeductibility
Tax Notes State, January 11, 2021
7 Pages Posted: 17 Feb 2021
Date Written: January 11, 2021
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: Suggested Citation