As the federal government granted canceled loans under the tax-free paycheck protection program, small business owners in Massachusetts could still face a larger tax bill due to a loan. PPP canceled or subsidy to state enterprises.
The state grants PPP loans to non-taxable corporations because the state corporation tax code conforms to the federal code, but the state personal income tax code does not by default correspond to the federal code. federal code, Administration and Finance Secretary Michael Heffernan told lawmakers in Tuesday’s budget. hearing. Unless state law changes, Massachusetts would tax exempt PPP loans from independent contractors or small businesses – the type of borrowers Congress was primarily intended to help.
The Speaker of the House of Ways and Means, Aaron Michlewitz, a Democrat who …
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