Governor Newsom Signs the following Bills

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.