State income tax issue looms over pandemic relief loan recipients
Unless the Legislature acts, Maine businesses and nonprofits could have a higher state tax burden than what federal tax rules require.
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As local banks prepare for an onslaught of new applications for federal pandemic relief loans, Maine businesses and nonprofits that received loans are still waiting for state lawmakers to pass a bill that would exempt the forgiven amount of the loans from state taxes.
The Legislature will consider measures to address the tax issue, but it is unclear when such a bill might pass. That lack of certainty could force loan recipients to delay filing their taxes and create additional trouble and expenses.