NFIB Applauds Governor Murphy’s Decision to Exempt PPP Loans from State Taxes

TRENTON (Feb 10, 2021) – NFIB, the leading small business association in New Jersey with thousands of members in the state, applauded Governor Phil Murphy’s decision to exempt forgiven Paycheck Protection Program loans from taxation and allow deductions on related expenses. The following statement is from NFIB’s New Jersey State Director Eileen Kean:

“We are very appreciative that Governor Murphy opted to help small businesses by removing a state tax burden from their shoulders. These business owners took PPP loans when they were financially desperate due to state-mandated shutdowns and ongoing restrictions. Then, they followed all the rules set by Congress to keep their employees paid and off of unemployment, and will not owe federal taxes related to the loan.

“When so many New Jersey small businesses are still fragile and trying to stay afloat, this decision by the state will help them avoid any additional costs.

“We are also grateful to Senators who voted in favor of a bill that would have removed these taxes and allowed deductions, and pleased the Governor’s action removes the need to pass that legislation.”

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For more than 75 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.