New State Tax Relief for Small Businesses
As stricter Stay-At-Home orders are needed to address the surge in COVID-19 cases, California has increased support for small businesses through new hiring tax credits, automatic sales tax relief, and increased access to capital.
"Main Street" Small Business Hiring Tax Credit - Apply Today!
Qualified small businesses adversely impacted by the pandemic may be eligible for a limited number of tax credits when they hire full-time employees.To qualify, employers must have:
- Had no more than 100 full or part-time employees as of December 31, 2019; and,
- Experienced a 50% decrease in gross receipts from April to June 2020, compared to the same months in 2019.
Information and applications for the credit program are accepted here now, through January 15, 2021.
Sales Tax Relief
There is also an automatic three-month payment extension for small businesses filing less than $1 million in sales tax. In addition, companies with larger taxable sales will see an extension of their interest-free payment plan agreements. Details can be found here.
Capital & Technical Assistance
The California Rebuilding Fund is now taking loan applications from small businesses, with an emphasis on those located in economically disadvantaged and historically under-banked areas. Businesses with a maximum of 50 employees and $2.5 million in revenue for 2019 are eligible to apply here.
The state just set aside $500 million for grants to eligible non-profits, small and micro-businesses and is working to set up the new program. For updates, please sign up here.
These actions are on top of the moves California has already made to stimulate the economy during this unprecedented time. For a complete list of programs supporting California businesses, click here.
I know times are tough, but please hang in there. And if you are a consumer, please continue to support our small businesses. We are all in this together.
Assemblymember, 19th District