Brooks Pierce Capital Dispatch: Updates from the NC General Assembly and Governor’s Office, April 30, 2021
This week, Gov. Roy Cooper issued a new Executive Order lifting many COVID-19 restrictions and legislators considered a number of bills.
Order Loosens COVID-19 Restrictions
This week, Gov. Roy Cooper issued Executive Order 209 relaxing the outdoor mask mandate and easing the mass gathering limit restrictions imposed due to COVID-19. The new Order is effective on April 30, 2021 at 5 p.m. and extends through 5 p.m. on June 1, 2021. A link to the order can be found here and FAQs about its details can be found here.
Waive Interest on State Income Tax Payments
The Governor this week signed a bill (H 279) clarifying that individual taxpayers do not have to pay interest on their 2020 state income tax payment if filed by May 17. The NC Department of Revenue had earlier extended this year’s filing deadline to May 17 and indicated that no penalties would be due if filing was done on or before that date. A change in state law was necessary to address the interest issue.
PPP Loan Expense bill still pending
A bill (H 334) clarifying that expenses related to federal Paycheck Protection Program (PPP) loans are not subject to state income tax for tax year 2020 remains in the Senate Rules Committee. Senate President Pro Tempore Phil Berger (R-Rockingham) was quoted this week in a press report indicating that the Senate will soon decide whether to consider the bill. The bill would temporarily repeal a provision in current law that does not allow businesses to deduct expenses funded with Payroll Protection Program (PPP) dollars if the proceeds received from forgiven PPP loans are excluded from income for tax purposes.
For more information, contact a member of the Brooks Pierce Government Affairs Team.