Kentucky Enacts State Paycheck Protection Act Tax Break

More than 50,000 Kentucky businesses stand to get state tax breaks on expenses paid by forgiven pandemic relief loans under a bill Gov. Andy Beshear (D) signed Monday.

The bill, House Bill 278, conforms to federal law by allowing a deduction for expenses paid using Paycheck Protection Program (PPP) loan proceeds, against a business’s Kentucky state income tax. The amount of revenue affected is difficult to quantify, nonpartisan legislative analysis found, because it’s unknown how much of the $5.3 billion in PPP loans to Kentucky businesses will be forgiven.

• The law, approved with overwhelming lawmaker support, will require ...