The Act of February 5, 2021 (No. 1 of 2021), S.B. 109, provides that
- The forgiveness of paycheck protection program (“PPP”) loans that is not income for federal income tax purposes under the Tax Relief Act of 2020 (Subtitle B of Title II of Division N of the Consolidated Appropriations Act of 2021, P.L. 115-260) is also not income for PA income tax purposes. However, expenses paid with those loans are not deductible if the loans are forgiven.
- Economic impact payments under the CARES act are also not income to individuals for PA income tax purposes.
Section 104-A of the Act of April 9, 1929 (No. 176), known as the Fiscal Code, as amended by Section 1.1 of Act 1 of 2021.