NJ Bill Seeks Tax Deduction If Small-Biz Loans Pay Expenses

New Jersey would allow the deduction of expenses paid for by federal small-business loans given as a response to the novel coronavirus pandemic, under a bill introduced in the state Senate.

S.B. 3234, which Sen. Paul Sarlo, D-Wood-Ridge, introduced Monday, would also ensure that forgiven small business loans issued as a part of the Coronavirus Aid, Relief and Economic Security Act would not be subject to the state's income tax.

The expense deduction would be counter to Internal Revenue Service guidance that does not allow loan recipients to deduct the expenses from federal returns.

--Editing by Robert Rudinger.

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