Ariz. Conforms To Federal Tax Code, PPP Loan Forgiveness

Arizona will fully conform to the newest federal coronavirus tax policies, including exempting from the state's commercial activity tax the Paycheck Protection Program loan amounts that were forgiven under federal law, under legislation signed by the governor.

S.B. 1752, signed by Republican Gov. Doug Ducey on Wednesday, conforms Arizona's tax code to provisions in the Coronavirus Aid, Relief and Economic Security Act  and the Consolidated Appropriations Act of 2021 . Those changes include fully exempting Paycheck Protection Program loans from income tax and providing immediate relief for businesses for any losses suffered during the pandemic.

The bill also exempts from state income the first $10,000 in unemployment insurance benefits received in 2020.

Ducey, in a statement, said that conforming Arizona's tax laws to the federal code will deliver a $600 million tax cut and it will provide state income tax relief to workers and small businesses.

--Editing by Neil Cohen.

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