Signed by Governor Gary Herbert

Vote Smart's Synopsis:

Vote to pass a bill that exempts certain loans and grants from Utah income taxes.

Highlights:

• Expands the list of amounts to be subtracted from adjustable income to include the following (Sec. 2):

• A Paycheck Protection Program (PPP) loan issued by the federal government;

• A PPP loan issued in response to the COVID-19 pandemic;

• A forgiven PPP loan if the borrower meets the expenditure requirements;

• A PPP loan that is subject to federal income tax;

• Any forgiven loan a taxpayer received by a Utah municipality;

• Any forgiven loan that was funded using federal funds given to a Utah municipality; and

• Any forgiven loan included in unadjusted income.

• Expands the list of amounts to be added to an individual’s adjusted gross income to include the aforementioned items (Sec. 5).

• Specifies that this bill takes effect immediately upon passage (Sec. 6).

• Specifies that this bill applies retrospectively for a taxable year beginning on or after January 1, 2020 (Sec. 7).

Full Bill Text