The Department of Revenue (DOR) recently issued a Q&A document to clarify Wisconsin’s tax treatment of Paycheck Protection Program (PPP) loans.
Questions include:
Why is the state of Wisconsin trying to tax PPP loans?
Why doesn’t Wisconsin just follow federal tax law?
Why is it called a double benefit?
To clarify further, the Legislative Fiscal Bureau stated in a separate memo that adoption of the federal tax treatment for the CAA provisions would cost Wisconsin an estimated $457 million in state revenue.