North Carolina Changes to Treatment of PPP Loan Expense Deduction
December 13, 2021
On November 15, 2021 the North Carolina General Assembly released Senate Bill 105, which allowed North Carolina to conform to the federal change made by the Consolidated Appropriates Act related to PPP funds. The bill passed the North Carolina House and Senate and was signed by the Governor on November 18, 2021. Therefore, expenses paid with PPP funds will be allowed as a deduction for NC purposes for tax years 2020 through 2022.
North Carolina has released guidance today regarding next steps for amending 2020 income tax returns.
If you are an affected taxpayer, we will reach out to you about this change in the coming weeks.