Personal income taxes: qualified employer plan: loans: CARES Act.

The Personal Income Tax Law, in partial conformity with federal income tax law, allows a qualified employer plan, as defined, to provide specified loans to a participant or a beneficiary that are not treated as taxable distributions from the plan if specified conditions are met, including that the maximum amount that a plan may permit as a loan does not exceed (1) the greater of $10,000 or 50% of the participant's vested account balance, or (2) $50,000, whichever is less, and that generally the loan be repaid within 5 years. Existing federal law, the Coronavirus Aid, Relief, and Economic Security Act (federal CARES Act) , among other things, in the case of any loan from a qualified employer plan to a qualified individual, as defined, made during the 180-day period beginning on March 27, 2020, increases the maximum amount of a permitted loan to up to (1) the greater of $10,000 or 100% of a participant's vested account balance or (2) $100,000, whichever is less, and delays the repayment period for a qualified individual with an outstanding loan for up to one year. This bill would, for purposes of the Personal Income Tax Law, provide conformity to those qualified employer plan loan provisions of the federal CARES Act. This bill would take effect immediately as a tax levy.