Finance Committee Approves Measures Addressing CARES Act Payments

The Senate Finance Committee approved bills on Monday (May 11) that would exempt federal COVID-19 stimulus payments from state and local income taxes and from consideration for eligibility purposes for certain programs, according to Committee Chairman Senator Scott Hutchinson (R-21).

Senate Bill 1100, introduced by Senator Judy Schwank, would exempt CARES Act payments from the definition of “income” for eligibility purposes for programs including: Property Tax/Rent Rebate, PACE/PACENET, childcare subsidies, Medicaid and CHIP.

House Bill 2408, introduced by Representative Brandon Markosek, would exempt CARES Act payments from state and local income taxes. It also increases the amount that non-profits and charitable trusts can spend on non-charitable purposes from 7 percent to 10 percent during a calendar year in which the Governor’s disaster emergency proclamation is in effect and the succeeding calendar year.

The Committee also approved Senate Bill 1041, a measure introduced by Senator Kim Ward that clarifies the sales tax exemption for multi-purpose agriculture vehicles.

Contact:          Justin Leventry           jleventry@pasen.gov