This week we were welcomed with long-anticipated news: Income on forgiven Paycheck Protection Program (PPP) loans
will not be subject to Massachusetts tax.
Though this may have taken a bit longer than we had hoped, I believe that it was your collective voices that carried this across the finish line. Because of your outreach,
54 additional legislators — for a total of 102 — co-sponsored the piece of legislation making PPP loans nontaxable at the state level. That is remarkable.
I truly believe in the power of personal stories, and this success reaffirms that belief. You know the struggles and triumphs of your clients better than anyone — especially throughout this last year. As I argued in a recent op-ed in
CommonWealth Magazine, this tax would have unfairly and disproportionately hit our small business community as their corporate counterparts already receive relief through the state tax code. Our small businesses are the backbone of our economy, and you play a vital part in ensuring they continue in that role.
Our advocacy on Beacon Hill is an important piece of what we do at the Society. Having you involved in our initiatives adds tremendous value while working with the Legislature. If you would like to continue to be involved in our advocacy efforts, sign up as a “
Key Person.”
While the bill still needs to be enacted by the Legislature and signed into law by Governor Baker, this announcement provides the certainty taxpayers and tax practitioners need to make accurate decisions while filing returns. The Department of Revenue (DOR) will continue to update its guidance and FAQs on the state’s tax treatment of PPP loans, which you can find on the
DOR website.
We are grateful that the Legislature understands the importance of this issue and the deep, positive impact this will have on you and your clients and thousands of small businesses across the Commonwealth.
A number of advocacy opportunities remain ahead of us to position the accounting profession for continued success. We look forward to doing that work. I hope you take a moment to appreciate all you do for your clients and on behalf of the profession in Massachusetts. Thank you again.