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AR HB1060
Bill
Status
10/15/2021
Primary Sponsor
Julie Mayberry
Click for details
AI Summary
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Exempts forgiven Paycheck Protection Program (PPP) loans from Arkansas state income tax under the Small Business Act and the Coronavirus Aid, Relief, and Economic Security Act as they existed on January 1, 2021.
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Allows businesses to deduct eligible expenses related to PPP loans or anticipated PPP loans from Arkansas taxable income, even if those expenses are used to determine loan forgiveness.
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Applies retroactively to tax years beginning on or after January 1, 2019, allowing businesses to claim deductions for prior years.
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Declares an emergency to take effect immediately upon Governor approval, failure to veto, or veto override to provide businesses with timely tax planning clarity.
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Overrides prior federal Treasury and IRS guidance that prohibited deductions for expenses resulting in PPP loan forgiveness, aligning Arkansas law with subsequent federal law amendments.
Legislative Description
Concerning The Tax Treatment Of Forgivable Small Business Loans And Expenses Related To The Coronavirus 2019 (covid-19) Crisis; And To Declare An Emergency.
Last Action
Died in House Committee at Sine Die Adjournment
10/15/2021