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August 25, 2020 5:02pm

CARES Act and PPP implications for state taxes in Kentucky

The CARES Act, Congress’s major legislative response to the COVID-19 pandemic, included numerous major tax provisions at the federal level in addition to key business-support programs such as the Paycheck Protection Program. Many of these measures have implications for Kentucky employers and individuals when it comes to state tax obligations. The Kentucky Department of Revenue has posted an FAQ responding to important questions related to the CARES Act and state tax rules. Access that information here.

A key question addressed in the FAQ that has been asked by GLI investors focuses on whether or not the forgiven portions of a Paycheck Protection Program loan are included or excluded from gross income for state income tax purposes. See that question and answer below.