STATE OF NEW YORK ________________________________________________________________________ 9037--A IN SENATE October 9, 2020 ___________ Introduced by Sens. KAPLAN, SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee AN ACT to amend the tax law, in relation to excluding loan expenses forgiven under the federal paycheck protection program from adjusted gross income The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subsection (c) of section 612 of the tax law is amended by 2 adding a new paragraph 43 to read as follows: 3 (43) In the case of a taxpayer who is a small business, owns an inter- 4 est in an S corporation that is a small business and for which the 5 election pursuant to subsection (a) of section six hundred sixty of this 6 article has been made, or owns an interest in a partnership that is a 7 small business, expenses funded by proceeds from loans forgiven under 8 the federal paycheck protection program. 9 § 2. This act shall take effect immediately and shall apply to tax 10 years beginning on or after January 1, 2020. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD17401-02-0