There is a lot of confusion about PPP and how the state of Idaho is handling it.
Is it taxable income? Or is it non-taxable? Conformity DOES NOT cover PPP.
There is an entirely separate bill, H0251, that addresses one-time federal COVID relief dollars, including PPP, EIDL, SBA Payments and Idaho Rebound Cash Grants.
From the bill's Statement of Purpose: This bill makes all one-time federal relief monies provided to Idaho businesses in 2020 non-taxable, except for emergency rental assistance program funds. This includes the Rebound Idaho Small Business Grants, forgiven Paycheck Protection Program loans, and Economic Injury Disaster Loan advance funds.
UPDATE: This bill passed the Senate Local Government & Tax Committee, Tuesday, March 9 and is headed to the Senate floor with a do-pass recommendation. HB 0251 is currently on the Senate Floor 2nd Reading; we are hoping to get a vote on the 12th... signing will take about 4-5 days after that.
Many members are working with the assumption that this bill will pass, and are waiting to release the returns the minute it is signed.
Make sure to check the ISCPA Advocacy page to watch the bills progress.
NOTE: Many Idaho Taxpayers received a 1099-G for Idaho Rebound Cash Grants, but if H0251 passes, this will not be taxable by Idaho. H0251 does not affect anything federally, so those funds are still taxable on the federal level.
The Idaho State Tax Commission will release guidance on all changes made as a result of H0251, if it is signed into law. ISCPA will send a Member Alert with all the information.