Assembly Bill 1577- exempts businesses from paying taxes on their PPP loans

Assembly Bill 1577, which exempts businesses from having to pay state taxes on loans received from the federal Paycheck Protection Program (PPP). As you all know the cash flow assistance for this program comes in the form of a loan of up to 2.5 times average monthly payroll costs, which can be fully forgiven if the funds are used for specified costs and if employees and employee salaries are maintained. California outperformed the rest of the nation in Paycheck Protection loans, with roughly $68.6 Billion coming into California under the PPP.