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How does a Federal Paycheck Protection Program loan affect my Illinois taxes?

​Under federal law, Paycheck Protection Program (PPP) loan forgiveness is not considered taxable income and the business expenses covered by the PPP loan proceeds are deductible business expenses. Currently, Illinois tax law has no addition modification to change this; therefore, the same treatment flows through to the Illinois return as the starting point for computing Illinois base income is federal taxable income.

You may access additional information by searching the entire Illinois Department of Revenue website.

If you have additional inquiries, you may submit them on the Questions, Comments, or Requests form.