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NJ Will Exclude Forgiven Virus Loans From Income

By Jaqueline McCool · May 12, 2021, 11:14 AM EDT

New Jersey will exclude forgiven federal small-business loan amounts from gross income under a bill approved by the governor. 

S.B. 3234, which Democratic Gov. Phil Murphy approved Tuesday, will exclude forgiven federal Paycheck Protection Program loan amounts from taxpayers' gross income. The bill also allows the deduction of expenses paid for by federal Paycheck Protection Program loans when those loans are forgiven. 

The bill applies retroactively beginning Jan. 1, 2020.

Sen. Troy Singleton, D-Moorestown, introduced the bill Dec. 7, 2020.

--Additional reporting by James Nani. Editing by Vincent Sherry.

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