U.S. Small Business Administration Office of Advocacy Assistant Chief Counsel Charles Jeane recently wrote about the Paycheck Protection Program and regulations that might allow states to tax forgiven PPP loans. Businesses in twenty-nine states may face taxes on forgiven PPP loans thanks to local tax law.
Ohio should not be one of these as Ohio tax law requires conformity with any US Tax Law change. This means that whenever the IRS rules on something, Ohio must pass legislation to make our laws conform. Thus, pursuant to Am. Sub. H.B. 197 of the 133rd Ohio General Assembly, Ohio is in conformity with federal income tax law as it existed on March 27, 2020. This includes the CARES Act (H.R. 748) and its applicability to Ohio’s income taxes.
For more information on Ohio conformity, please see the Department’s Conformity Updates page.