The Commonwealth of Massachusetts caught up with the federal government and many other states this past week when Governor Charlie Baker signed many parts of HB 90 into law. Of primary importance to small business owners, the legislation excludes proceeds from Paycheck Protection Program (PPP) loans along with Economic Injury Disaster Loan (EIDL) advances from the taxable income of “pass-through entities”. A separate provision in the legislation mimics other federal law in that it provides that the first $10,200 in unemployment compensation received in 2020 and 2021 will be nontaxable for individuals at or below 200% of the federal poverty level. Furthermore, the law, which passed the legislature unanimously earlier last month, authorizes the borrowing of some $7 billion in new state debt in order to keep the unemployment insurance trust fund from going insolvent, while also capping the size of any increases in unemployment insurance premiums on employers. Notwithstanding that the governor returned a number of provisions to the legislature with recommended amendments, those provisions that won his approval became effective immediately upon his signing of the bill.