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12.16: State Announces: Tax Credits and Support for Small Businesses

In an effort to continue supporting small businesses through the pandemic, the state has recently increased different channels of support, including:


Hiring tax credits,

Automatic sales tax extensions,

Access to capital

 

Please read on, and learn how to qualify and apply: 

 

1. The "Main Street" Small Business Hiring Tax Credit

Beginning this month, qualified small businesses impacted by Covid-19 can reserve tax credits for hiring full-time employees.  There are a limited number of credits available, so please be sure to reserve your credit ASAP.

 

To qualify for the credit, taxpayers (employers) must:

  • Have 100 or fewer employees on December 31, 2019 (all employees, including part-time employees).
  • Have experienced a 50% decrease in gross receipts from April 2020 to June 2020, compared to the gross receipts from April 2019 to June 2019.
  • Apply for a tentative credit reservation from CDTFA between December 1, 2020 through January 15, 2021.

For more information or to reserve your credit, click here. 

 

2. Sales Tax Relief

There are now also:

  • An automatic three-month tax extension for taxpayers filing less than $1 million in sales tax,
  • An extension of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales, and
  • Expanded interest-free payment options for larger businesses particularly affected by significant restrictions on operations based on Covid-19 transmissions. 

For more information, click here.

 

The California Rebuilding Fund: 

The California Rebuilding Fund is now taking loan applications to support California's small businesses, particularly those located within economically disadvantaged and historically under-banked areas. Businesses with 50 employees or less and revenues less than $2.5 million or below in 2019 are eligible to apply.

For more information or to apply, click here. 

 

State Grants for Eligible Non-Profits, Small and Micro-Businesses: 

  • State grants for eligible non-profits, small and micro-businesses are coming soon. California's Office of the Small Business Advocate is working to establish the program. 

For updates, please sign up here.

For an additional list of programs supporting California businesses, please click here.