TRENTON, N.J. – The Paycheck Protection Program established by Congress in late March was aimed at helping businesses keep making payroll for eight weeks, despite Gov. Phil Murphy’s orders to shut down because of the coronavirus pandemic. Unfortunately, these loans can be taxed in New Jersey, but Assemblyman Ron Dancer has a solution that will fix this issue.
Dancer’s bill would ensure forgiven loans would not be subject to the state’s income tax. By allowing these loans to be exempt, Dancer believes businesses will be able to use the funds for their intended purpose.
“Businesses are already trying to stay afloat during this pandemic and to subject them to more taxes in a time like this is absurd,” stated Dancer (R-Ocean). “These loans are to help business owners keep their employees on their payroll and should be used solely for that purpose. We must make sure New Jersey business owners will be able to return to a thriving business not to an unnecessary tax burden.”