California Enacts Small Business Bills

September 22, 2020

Email This Report

Source: JD Supra, by Ervin Cohen & Jessup LLP

On September 9, 2020, California Governor Gavin Newsom signed three bills into law that were designed to provide support for small businesses, including restaurants and other food and beverage companies.

SB 1447 authorizes a $100 million hiring tax credit program for qualified small businesses. The hiring credit will be equal to $1,000 for each net increase in qualified employees, up to $100,000 for each qualified small business employer.  To qualify for the credit, the business’ gross income must have declined at least 50% over this time last year.

AB 1577 excludes Paycheck Protection Program loans that were forgiven through the federal CARES Act from state tax liability.  The law amends California’s Revenue and Taxation Code to state: “For taxable years beginning on and after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142).”

Lastly, the state’s budget bill, SB 115, appropriates some funds to small business relief. This includes $411.5 million to advance economic stimulus with $230.5 million to help jumpstart construction projects.

 

Source Link

Filed Under: ,