Business Report: Shore optimism, tax break on PPP loans, gas prices top $3, inflation index rose

New Jersey businesses that received PPP loans from the federal government are getting a break on their state taxes

Shore area officials are optimistic about the next few months, even with some pandemic-related restrictions still in place. That was the bottom line at Stockton University’s 13th Annual Jersey Shorecast, where panelists gave their outlooks for the upcoming tourism season. In Atlantic City, even the conventions are coming back. Larry Sieg, president and CEO of Meet AC, said the convention center is booking larger events, with bookings running through 2025. But he cautioned things will not return to normal right away. Meantime, an official from Cape May County said she’s seeing a jump in rentals and reservations for summer.

New Jersey businesses that received PPP (Paycheck Protection Program) loans from the federal government are getting a break on their state taxes. Gov. Phil Murphy has signed a bill that would exempt the loan proceeds from state tax, following the lead of the federal government, which already decided not to tax PPP proceeds.

Gas prices have hit $3 a gallon and continue to climb in New Jersey and across the country, as some states face gas shortages after the Colonial Pipeline cyberattack.

But it’s not just gas prices that are jumping. A closely-watched inflation index, the CPI, rose 4.2% in April, the biggest 12-month increase since 2008. Nearly every item in the index increased in price, including housing, food, clothing and vehicles. Prices for used cars jumped 10%, the biggest one-year increase since 1953.

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