Last week, California’s Main Street Small Business Tax Credit launched, offering some relief for small businesses. The program allows a small business hiring credit against California state income taxes or sales and use taxes to certain qualified small business employers.
The tax credit applies to small business meeting the following criteria:
- Employed 100 or fewer employees as of December 31, 2019; and
- Suffered a 50% decrease or more in income tax gross receipts (i.e. income minus returns and allowances), when comparing second quarter 2020 to second quarter 2019.
The tax credit program has received $100 million in funding and will be allocated on a first-come, first-served basis, so we recommend clients who qualify to apply as soon as possible.
You may apply online HERE. If you have any questions about the program or how to apply, please don’t hesitate to let us know.