Greater Coachella Valley Chamber of Commerce
  • Join the Chamber
  • Business Directory
  • GCVCC
    • Articles Of Incorporation
    • GCVCC Board of Directors
    • Staff
    • Ambassadors
  • Events
  • Legislative Action
    • Legislative Platform
    • Legislative Action
    • Elected Leaders
  • Resources & Publications
    • Get Your Business Known
    • Focus on Small Business
    • Business Support
    • Publications
    • The Gem
    • Hot Deals
  • Our Partners
    • Pure Community / My-Local-Valley
    • Office Depot Chamber Rewards Program
    • Leadership Coachella Valley
  • News
    • Community
    • City
    • Business
    • Non-Profit news
    • Arts & Entertainment
    • Legislative Advocacy Updates
    • E-Newsletter Signup
    • Submit Your News
  • Chambers
    • Desert Advertising Federation
    • Cathedral City Chamber
    • Coachella Chamber
    • Desert Hot Springs Chamber
    • Indian Wells Business District
    • Indio Chamber of Commerce
    • La Quinta Chamber
    • Unincorporated Riverside County
  • Join
  • Business Directory
  • GCVCC
    • Article of Incorporation
    • GCVCC Board of Directors
    • Staff
    • Ambassadors
  • Events
    • Events & Registration
  • Legislative Action
    • Legislative Platform
    • Legislative Action
    • Elected Leaders
  • Resources & Publications
    • Get Your Business Known
    • Focus on Small Business
    • Business Support
    • Member Login
    • Publications
    • The Gem
    • Hot Deals
    • Newsletters
  • Our Partners
    • LoveLocalCV
    • Pure Community
    • Office Depot Chamber Rewards Program
    • Leadership Coachella Valley
  • News
    • Community
    • City
    • Business
    • Non-profit
    • Arts & Entertainment
    • Legislative Advocacy Updates
    • E-Newsletter Signup
    • Submit your news
  • Chambers
    • Cathedral City Chamber
    • Coachella Chamber
    • Desert Advertising Federation
    • Desert Hot Springs Chamber
    • Indio Chamber of Commerce
    • La Quinta Chamber
    • Indian Wells Business District
    • Unincorporated Riverside County

News

GCVCC Asking State to Amend PPP Tax Policy

December 29, 2020

News from the GCVCC Legislative Advocacy Team

The GCVCC would like to thank Osborne Rincon CPA’s and Jason Schneider, CPA, for their help with this policy position. 

The GCVCC has sent the following urgent request to Coachella Valley State elected representatives concerning State tax policy as it applies to the PPP loan program.

Full Letter: PPP State Tax Status 12-29-20

Dear Coachella Valley State Elected Leaders,

The Greater Coachella Valley Chamber of Commerce (GCVCC) is requesting you work with your respective legislative bodies to help alleviate an unnecessary tax burden being placed on local small businesses during this time of financial crises. The tax burden stems from language found within Assembly Bill 1577, passed and signed into law on September 9, 2020, which is now out of line with amended federal tax policy.

The Consolidated Appropriations Act of 2021 (H.R. 133) which was passed and signed into law on Monday, December 28, 2020, did more than just create additional stimulus checks of $600 and authorize a second round of Paycheck Protection Program (PPP) loans called second draw loans. It reversed the IRS’s position that the expenses incurred with the forgivable PPP funds would not be included as deductible expenses on the business’s 2020 income tax return. The intent of the original CARES Act funding was to create stimulus in the form of forgivable loans. By passing H.R. 133 and clarifying that businesses can in fact take the expense deductions attributable to the PPP funding, the PPP loans become the tax-free stimulus they were intended to be.

While the federal government has corrected the error regarding this funding, the California Legislature has not. Assembly Bill 1577 created language in the CA Revenue and Taxation Code to conform to the federal government’s exclusion of PPP funds as income, but also codifies the exclusion of the related expenses as deductions. In summary, this means the federal government will allow the expenses on the 2020 income tax return, but the state of California will not. Depending on the amount of PPP funds received, businesses could have significantly more income tax on their California return than they would on their federal return.

We are calling on our elected leaders in Sacramento to amend AB 1577 as necessary to bring the States taxation policy in-line with current federal tax guidelines as it relates to Paycheck Protection Program (PPP). By doing so the State legislature will reduce confusion between State and Federal tax requirements, while also allowing the PPP program to accomplish its stated goal of supplying a much-needed lifeline to the California small business community.

Recent Posts

  • How to Get a Job in the Cannabis Industry
  • Cannabis Cultivation Fundamentals
  • APPLICATION PERIOD EXTENDED FOR ‘HELP 2 OTHERS INDIO COVID-19 WATER BILL ASSISTANCE PROGRAM’
760.347.0676
760.347.6069
[email protected]

Locations

Coachella

1515 6TH ST.
Coachella, CA 92236

M – TH | 8:30am – 4:30pm

Cathedral City

68487 E Palm Canyon Drive
BLDG. 3 | SUITE 31
Cathedral City, CA 92234

T – F | 8:30am – 4:30pm

Indio

82-921 Indio Blvd.
Indio, CA 92201

M – F | 8:30am – 4:30pm

Desert Hot Springs

12561 Palm Drive
SUITE C
Desert Hot Springs, CA 92240

M – F | BY APPOINTMENT ONLY

La Quinta

78015 Main Street
SUITE 206
La Quinta, CA 92253

M – F | BY APPOINTMENT ONLY

  • Contact Us
  • Terms of Use
© Greater Coachella Valley Chamber of Commerce. All rights reserved.

Sign up for the latest news and updates from GCVCC.

  • This field is for validation purposes and should be left unchanged.