La. Tax Dept. Says Some Virus Relief Exempt From Income Tax

Louisiana will provide an income tax exemption for federal economic impact payments and forgiveness of Paycheck Protection Program loans, the state Department of Revenue said in a statement Thursday outlining the taxability of aid related to the novel coronavirus pandemic.

The department provided guidance for taxpayers ahead of the beginning of the income tax filing season Friday, explaining that economic impact payments and forgiveness for PPP loans provided under the Coronavirus Aid, Relief and Economic Security Act are not subject to Louisiana income taxes.

Increased federal unemployment benefits, the state's one-time $250 rebates provided to eligible frontline workers in 2020 and federal funds directed to small businesses through a state program are subject to state income taxes, the department said.

--Editing by Neil Cohen.

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