The Georgia House and Senate have now passed House Bill 265 that will negate certain state taxes on forgiven federal Paycheck Protection Programs Loans. The Bill was authored by state Rep. David Knight (R-Griffin) with second signer Rep. Bruce Williamson (R-Monroe).
“Importantly, we codified that the forgiven PPP loans would not be taxed by the State of Georgia,” Williamson said. “It passed the senate yesterday, and is on the way to the Governor’s desk for signature.”
H B 265 is the annual bill reconciling Georgia law with changes to the federal Internal Revenue Code. It will reportedly save Georgia taxpayers more than $250 million by making certain PPP loans tax exempt. It cleared the House on Feb. 9 and was passed unanimously be the Senate yesterday.
Under the bill, businesses that are eligible for PPP loan forgiveness would not be required to pay taxes on the loans despite the fact that they count as income. It also allows for those business owners to claim tax deductions on the loans.