NJCPA Applauds Governor Murphy’s Administration for Declaring Forgiven PPP Loans Exempt from State Income Taxes

Statement by Ralph Albert Thomas, CPA (DC), CGMA, CEO and Executive Director, New Jersey Society of Certified Public Accountants

The New Jersey Society of Certified Public Accountants (NJCPA) applauds Governor Murphy’s and State Treasurer Elizabeth Maher Muoio’s decision today to allow forgiven Paycheck Protection Program (PPP) loans to be exempt from New Jersey state income taxes, similar to how they are excluded from federal income taxes. We are also pleased with the decision to allow expenses paid with the loans to be tax deductible.

PPP loans were designed to help small businesses survive the COVID-19 pandemic — by keeping employees on payroll and their doors open. The loans have enabled these businesses to keep afloat and continue to do a great service to their communities.  

At the NJCPA, we recognize the need to bolster the small business landscape and assist the CPAs who serve these businesses and residents of New Jersey. We look forward to supporting the Murphy Administration in any way towards this endeavor.