States Feel Pressure to Respond to Tax Features of CARES Act

Pressure is mounting on state legislatures and revenue agencies, before the 2021 tax-filing season begins, to clarify their treatment of benefits added to the federal tax code by coronavirus relief laws enacted last year.

Taxpayers in at least a dozen states are eagerly awaiting guidance or new laws adapting to features of the $2.2 trillion CARES Act, which included a bevy of tax perks to help businesses affected by the pandemic. Taxpayers are also demanding clarity on state tax approaches to the Paycheck Protection Program, created under the CARES Act in March and modified under the $900 billion stimulus and ...