In FOS’s January 27, 2021 Client Alert, we noted that Wisconsin had not yet followed the IRS’s lead in allowing expenses paid with Paycheck Protection Program (“PPP”) loans to be tax-deductible for Wisconsin tax purposes.
This concerned many businesses which expended substantial authorized expenses regarding their PPP loans.
On February 18, 2021, when Governor Tony Evers signed Assembly Bill 2 into law, Wisconsin joined with the IRS in allowing deductions for PPP loan expenses for Wisconsin tax purposes.
Many taxpayers can now breathe a sigh of relief in knowing that expenses paid with PPP loans are tax deductible for federal and Wisconsin state tax purposes.
If you have any questions regarding PPP loans or their forgiveness, contact your FOS attorney.