Governor Gavin Newsom signed three new bills into law Wednesday, providing support for California’s small businesses during the COVID-19 pandemic, officials said.
https://www.facebook.com/CAgovernor/videos/350576609635849
One of the laws allows small businesses to exclude Paycheck Protection Program (PPP) loans from gross income for state taxes, while another authorizes a hiring tax credit program to support small businesses grappling with the impact of the COVID-19 pandemic
“Businesses across the state have been hard hit by the COVID-19 pandemic and they need support to keep their doors open and their employees on the payroll,” said Governor Newsom. “Today, we are taking action to keep money in the hands of small businesses while expanding job opportunities for those who lost their jobs because of this virus. We have much more work to do together, but I know these bills will make a big difference for small businesses.”
The COVID-19 pandemic has presented significant challenges to small businesses, employers and employees. Small Business Majority survey data found that up to 44 percent of businesses are at risk of shutting down, and from February to April 2020, there was a 22 percent drop of active business owners nationwide according to data released through the Census Current Population Survey.
Assembly Bill (AB) 1577 conforms state law to federal law by excluding from gross income Paycheck Protection Program loans that were forgiven through the federal CARES Act and subsequent amendments in the Paycheck Protection Program and Health Care Enhancement Act of 2020, officials said.
Senate Bill (SB) 1447 authorizes a $100 million hiring tax credit program, known as “Main Street Hiring Tax Credit” for qualified small businesses.
The law offers a tax credit to many California companies that had 100 or fewer employees at the end of 2019 and then experienced at least a 50 percent drop in gross receipts as COVID-19 slowdowns hit during the second quarter of 2020.
Those businesses would receive a $1,000 tax credit for each qualified employee hired between July and the end of November, up to $100,000 per business, according to officials.
The business would have five years to use the credit and can apply it to any taxes owed, including sales and use taxes, officials said.
Senate Bill (SB) 115, a budget trailer bill, by the Committee on Budget and Fiscal Review, appropriates $561 million in fiscal year 2020-21. This includes $411.5 million to advance economic stimulus with $230.5 million to help jumpstart construction projects, according to state officials.
State officials stated that small business support is “critical” to ensure Californians are connected to the resources they need to pivot and adapt to the COVID-19 marketplace. To learn more about state efforts to support small California businesses, click here.
Sponsored Articles
KHTS FM 98.1 and AM 1220 is Santa Clarita’s only local radio station. KHTS mixes in a combination of news, traffic, sports, and features along with your favorite adult contemporary hits. Santa Clarita news and features are delivered throughout the day over our airwaves, on our website and through a variety of social media platforms. Our KHTS national award-winning daily news briefs are now read daily by 34,000+ residents. A vibrant member of the Santa Clarita community, the KHTS broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. The station streams its talk shows over the web, reaching a potentially worldwide audience. Follow @KHTSRadio on Facebook, Twitter, and Instagram.