New State Tax Credit

Small Business Hiring Tax Credit Applications Accepted Dec. 1

State legislators created the $100 million Small Business Hiring Credit to ease economic hardships imposed on small businesses due to COVOD-19.

In brief:

• $1,000 tax credit for each net new hires in second half of 2020, up to $100,000.

• Use against personal and corporate income tax liabilities OR sales and use tax liabilities.

• Application period: December 1, 2020 to January 15, 2021.

• Applications accepted beginning December 1, 2020. Processed on first come, first served basis.

Eligibility:

• 100 or fewer employees as of December 2019.

• 50% decrease in gross receipts in Q2 2020 compared to Q2 2019.

• Net increase in employment July 2020 through November 2020.

Where to Apply:

• Online portal administered by California Department of Tax & Fee

• Administration (CDTFA)

• Application and FAQs: https://www.cdtfa.ca.gov/taxes-and-fees/SB1447-tax-credit.htm

Other Information:

• FTB webpage: https://www.ftb.ca.gov/file/business/credits/small-business-hiring-credit.html

• Additional state assistance programs: https://www.cdtfa.ca.gov/services/covid19.htm