California Provides Assistance for Small Businesses
Temporary Tax Relief and $500 Million in Grants
November 30th, Governor Gavin Newsom "...announced that California will provide temporary tax relief for eligible businesses impacted by COVID-19 restrictions. The temporary tax relief entails an automatic three-month income tax extension for taxpayers filing less than $1 million in sales tax, extends the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales and provides expanded interest free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions. The total tax relief, if fully utilized, is estimated to have billions in impact. These efforts are informed by recommendations made by the Governor’s Task Force on Business and Jobs Recovery."
The "...announcements build on the state’s ongoing business support throughout the pandemic, including the 'Main Street Hiring Tax Credit,' which authorizes $100 million in hiring tax credit for qualified small businesses. The credit is equal to $1,000 per qualified employee, up to $100,000 for each small business employer. The application opened...December 1. A full list of existing state support for businesses can be found here."