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Will the state conform with federal tax codes related to the Paycheck Protection Program (PPP)? That’s the question being asked by many in Augusta this week.
On Monday, the Mills Administration introduced a budget package to lawmakers that included a plan for partial tax conformity. Facing a $100 million tax liability for federal PPP loans, the state’s business community immediately objected to the proposal, arguing that the policy would force more companies to close their doors. Opponents of full conformity disagree, however, claiming the cost to conform is more than what the state can afford.
What happens to this budget proposal remains to seen. Late Wednesday, the Governor indicated her willingness to conform to federal standards if funding sources are identified to balance the budget.
The League is monitoring this issue closely and will keep credit unions apprised as the proposed budget works its way through the legislative process.