This week, Governor Gavin Newsom signed three new bills into law to help boost California’s economic recovery and provide further relief to small businesses struggling with the COVID-19 pandemic.

Assembly Bill 1577 allows small business to exclude certain federal CARES Act funds—including  proceeds from forgiven Paycheck Protection Program loans—from gross income for state taxes.

Senate Bill 1447 authorizes a $100 million hiring tax credit program—called the “Main Street” 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, a business must have fewer than 100 employees, and its gross income must have declined at least 50% from April through June this year compared to the same period in 2019.  Qualified businesses have until April 30, 2026 to claim the credit.

Senate Bill 115 is a budget trailer bill which appropriates $561 million in fiscal year 2020-21.  This amount includes $411.5 million in economic stimulus and $230.5 million in state bond funding for construction projects across the state.