---
title: The CARES Act and PA Taxability
description: On February 5, 2021, Governor Wolf signed into law Act 1 of 2021 (SB 109). The bill states the taxability of CARES Act relief payments.
---

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# [The CARES Act and PA Taxability](https://www.troutcpa.com/blog/the-cares-act-and-pa-taxability)

 Written by [Admin](https://www.troutcpa.com/blog/author/admin) | Feb 10, 2021 6:55:55 PM

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](https://www.troutcpa.com/hubfs/PA%20-%20CARES-Act%20Taxability.pdf) handout from the PA Department of Revenue. 

[View full post](https://www.troutcpa.com/blog/the-cares-act-and-pa-taxability)

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