Senator Andreas Borgeas (R-Fresno) and Senate Republican Leader Scott Wilk (R-Santa Clarita) released a joint statement urging Sacramento leadership to incorporate the provisions of Senate Bill 265, a measure by Senator Borgeas that would provide much needed tax relief on the COVID-19 loans provided to save businesses and protect jobs, into an emergency budget bill. With today being the traditional tax deadline, the only way to deliver timely relief to small businesses is to incorporate the provisions of Senate Bill 265 into an emergency budget bill immediately.
Senate Bill 265 would waive California’s tax liability on the “Paycheck Protection Program” (PPP) loans small businesses and non-profits received in 2020 from the federal government and allow them to deduct expenses. Introduced by Senator Borgeas on January 27, Senate Bill 265 would ensure businesses are not burdened with additional California taxes on the money provided by the federal government to mitigate the effects of the pandemic.
Last week the U.S. Treasury Department provided clarification and guidance on aspects of the recently passed federal aid package allowing California to fully conform to the federal tax code and make PPP loan expenses FULLY tax-deductible for businesses.
“Tax season is here and time is up,” said Senator Borgeas, author of SB 265. “Businesses need full deductibility of PPP loan expenses, which is why I’m asking the Governor and legislative leaders to incorporate SB 265 into an emergency budget bill. This would give businesses the tax relief they need now.”
“April 15 is our traditional tax day, yet the legislature has not done a thing to address the potential tax liability our small businesses and non-profits are facing on the loans they received from the feds. We have the cash – they deserve our help. Let’s get this done. Senate Republicans urge our colleagues to do the right thing and incorporate the provisions of SB 265 into an early budget action,” said Senate Republican Leader Wilk.