UPDATE ON LEGISLATION TO ALIGN STATE TAX CODES WITH FEDERAL FOR COVID FUNDS

       For the third consecutive year since the pandemic began, MSCPA is once again advocating for changes to the Mississippi Tax Codes to align our State tax provisions with federal tax provisions related to COVID-19 grant and loan programs.

       MSCPA worked diligently on HB1529 to be in place for the March 15 tax filing deadline.  The bill includes the following remaining COVID funds:     

 

• Aligns the MS treatment of PPP#2 loan forgiveness, Shuttered Venue Operator Grants, and grants received from the Restaurant Revitalization Fund with the federal treatment to exclude such amounts from MS taxable income and allow the deduction of the expenses paid with such funds. Of note, the deduction of expenses paid with PPP#2 was granted in the 2021 Legislative session. 

 

• In addition, the bill excludes grants received from the Mississippi Agriculture Stabilization Act from taxable income and provides for the deduction of expenses paid with these grants.

 

• The bill is retroactive to January 1, 2020.

 

HB1529 PASSED AND WAS SIGNED BY THE GOVERNOR ON MARCH 14!

 

HOWEVER, it has been discovered that a date issue due to the retroactive nature of our bill conflicts with the State Tax Code cited in the Medical Marijuana Bill which has become law.  Because of this conflict, the portion of HB1529 related to the deductibility of expenses is null. The tax treatment on the income side is correct as written and stands.

 

       We are now working all avenues to correct the expense deductions via other bills that are still alive. SB3163, HB1685 & HB1108 as well as other possible bills, have been amended to include the language. When/if one of these bills passes, we will notify the membership. Please be patient as these bills work through the Legislative process.   

 

        Note that MS treatment of PPP#2 loan forgiveness and the deductibility of related expenses are now aligned with federal.

 

        Special thanks to our Taxation and Legislation Committees for their dedicated work in helping to draft and promote sponsorship and passage of this bill and other bills in the preceding two years dealing with various COVID funds.