“This was the appropriate decision by Governor Murphy and State Treasurer Muoio and we thank them for their diligence and consideration.

“Access to PPP funds has been a lifeline for thousands of struggling small businesses throughout New Jersey. Increasing state taxes on the back of that federal aid would have gone against the intent of that aid and caused further financial duress for those employers. We are pleased to see the state follow the federal lead in clarifying that PPP loans will not count as taxable income and can be used as a business expense for tax purposes.

“We also still encourage the passage and signing of S-3234/A-5149 to codify this decision in statute to ensure future rounds of PPP loans remain exempt from state taxes. We thank the sponsors of this legislation, Senators Singleton and Bucco and Assemblymen Greenwald, Benson and Johnson, for pushing this issue forward.”