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Net Profit Returns: PPP Loans & COVID-19 Care Grants

March 24, 2021
Occupational License - 270-393-3000
Bowling Green, KY

Information in regards to PPP loans and COVID-19 Care Grants as they relate to the filing of the Net Profit Returns for the City of Bowling Green.

Federal Paycheck Protection Program (PPP) Loans:

How the taxpayer included the loan on the federal return will determine if it is subject to the Occupational License Fees. The treatment of PPP loans for Occupational tax purposes will be the same as the federal.  Taxpayers whose federal loans are forgiven by The CARES Act are not required to include the proceeds in taxable income. If the loan was not forgiven, it must be included in taxable income. Expenses that are covered by the forgiven loan proceeds are still deductible in the calculation of taxable income.

COVID-19 Grant from Bowling Green KY (BG CARE GRANTS):

These grants are taxable. The receipt of a government grant by a business is generally not excluded from the gross income of the business under the Internal Revenue Code. Currently no Federal or local exemption exists for these grants to make them nontaxable. Therefore, the funds received from these grants are included in the gross income reported on the City of Bowling Green net profit form. 

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