On February 5, 2021, Governor Wolf signed into law Act 1 of 21021 (SB 109). The bill states the taxability of CARES Act relief payments. The following payments are not subject to Pennsylvania tax:
- Paycheck Protection Plan (PPP) Loans that are forgiven
- For Pennsylvania personal income tax purposes, no deduction may be rejected for an otherwise deductible expense if the expense payment results in forgiveness of a covered loan.
-
EIDL Advance
- HHS Provider Relief Fund
- Federal Stimulus Checks (Economic Impact Payments)
- Grants from localities that were not given from EIDL program (e.g., Recovery Lancaster Grant)
For additional information, please download the CARES Act: PA Taxability handout from the PA Department of Revenue.
