Update on HB 278: Paycheck Protection Program expense deductibility
The Consolidated Appropriations Act of 2021 confirmed that business expenses paid with the proceeds of a forgiven PPP loan are deductible and proceeds of a forgiven PPP loan are excluded from income. The Kentucky Department of Revenue was able to conform to the federal on saying the income is not includible, but due to Kentucky statute, they could not make the expenses deductible. KyCPA has been working with the General Assembly to fix this legislatively.
HB 278 addresses this issue and passed out of the House Appropriations and Revenue Committee and is headed to the House floor. If you are supportive of HB 278 contact your legislator to let them know that you support HB 278.
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