Newsom announces temporary tax relief, $500 million in grants for small businesses

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Posted at 2:31 PM, Nov 30, 2020
and last updated 2020-11-30 17:31:14-05

SACRAMENTO, Calif. — Gov. Gavin Newsom announced Monday that the state will provide additional temporary tax relief for eligible businesses impacted by COVID-19 restrictions and $500 million in new COVID-19 Relief Grant funding for small businesses.

According to a press release, the temporary tax relief entails an automatic three-month income tax extension for taxpayers filing less than $1 million in sales tax, extends the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales and provides expanded interest-free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions.

Newsom said the credit is equal to $1,000 per qualified employee, up to $100,000 for each small business employer.

The application opens Tuesday, December 1.

Newsom also announced the allocation of a $500 million COVID Relief Grant administered by the California Office of the Small Business Advocate for small businesses that have been impacted by COVID and the health and safety restrictions.

Funds would be awarded to selected intermediaries with established networks of Community Development Financial Institutions to distribute relief through grants of up to $25,000 to underserved micro and small businesses throughout the state by early 2021.

Non-profits would also be eligible for these grants.

CalOSBA is establishing the program and will make it available to small businesses as soon as possible, for updates on availability visit here.