An ongoing problem with the acceptance of Paycheck Protection Program loan forgiveness has been with the tax treatment by a business’ home state of the forgiven monies and the expenses the PPP funds have paid for. While the federal government addressed the issue with the passage if the most recent COVID relief bill in December, many states still do not allow the deduction for the taxpayer. That’s no longer the case in Wisconsin however, after Governor Tony Evers last week signed legislation changing how the state will treat expenses paid for with PPP funds,. Last Thursday, Evers signed Assembly Bill 2 (AB2), which was passed by overwhelming bipartisan majorities in both branches of the Wisconsin legislature and in doing so, confirmed that proceeds from the forgiven loans would not be taxed. The issue remains a major problem in many other states, but will hopefully be addressed in coming months.