Ark. Bill seeks to overturn tax on canceled PPP loans and farm aid
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“href =” http://188.8.131.52/feed-generator/# “> Paul Williams · February 2, 2021, 6:26 p.m. EST
Arkansas would offer state tax relief for federal pandemic assistance loans and payments from a federal food aid program designed to help farmers and ranchers under a bill presented to the State House of Representatives.
HB 1361, introduced on Monday, would comply with federal tax exclusions, deductions and adjustments for the Paycheck Protection Program and the Coronavirus Food Aid Program under the Coronavirus Aid, Relief and Economic Security Act and the Consolidated Appropriation Act .
Under the bill, Arkansas would offer a gross income exclusion for income from canceled PPP loans and for payments under the food aid program that has helped farmers and ranchers who have encountered financial hardship. during the spread of COVID-19, the respiratory illness caused by the virus.
The bill would also not allow the denial of a tax deduction or reduction of a tax attribute because of the exclusions of payments from the food assistance program.
The bill would also allow the Ministry of Finance and State Administration to provide exceptions to the filing requirements for information returns with respect to gross income exclusions. If passed, the bill would come into force immediately under an emergency clause and would apply to taxation years beginning on or after January 1, 2019.
“Arkansas should conform its tax laws to the federal tax treatment of these loans, payments and expenses to allow Arkansas taxpayers to fully benefit from the tax laws so that they can continue to provide jobs in Arkansas and avoid high rates. higher unemployment and financial distress, ”the bill’s emergency clause said.
Les Eaves Rep. R-Searcy introduced the bill. The legislation is scheduled for a hearing before the House Income and Tax Committee on Thursday.
–Edited by Neil Cohen.
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