Governor Newsom Signs Bill Giving Small Business a $6.2 Billion Tax Cut


On April 29, Governor Gavin Newsom signed a bill that will give small businesses hit hardest by this pandemic a $6.2 billion tax cut over the next six years – a critical lifeline that will help get our small businesses back on their feet and an important component of California’s economic recovery strategy.

“California’s small businesses have been hampered and hammered by this pandemic, and we are using every tool at our disposal to help them stay afloat,” said Governor Newsom. “Help is on the way in the form of a $6.2 billion tax cut, which will provide support, not to large publicly traded companies, but to the mom-and-pop businesses – the beauty salons, restaurants and dental offices – which have been resilient during this difficult time. This small business tax relief is exactly what is needed to keep businesses open so they can continue paying their employees.”

Governor Newsom signs $6.2 billion tax cut for small businesses, visits local shops with Danny Trejo

Under the legislation, AB 80 by Assemblymember Autumn Burke (D-Inglewood), the forgiven PPP loans that businesses received from the federal government during the pandemic will not be counted as taxable income, and these businesses can also deduct the costs of expenses that those loans paid for. This is additional state tax relief for the small businesses that have been struggling most, and may very well make a difference in their choosing to reopen, stay open, or shut down as they look to the future.

Governor Newsom signs $6.2 billion tax cut for small businesses, visits local shops with Danny Trejo

The Governor signed the legislation in San Fernando after meeting with local business owners that have utilized federal Paycheck Protection Program (PPP) loans to keep operating during the pandemic. He was joined by actor, restaurateur and Los Angeles native Danny Trejo.

California small businesses are drivers of economic growth – creating two-thirds of new jobs and employing nearly half of all private sector employees. California is home to 4.1 million small businesses, representing over 99 percent of all businesses in the state and employing nearly half of the state’s total workforce.

Governor Newsom signs $6.2 billion tax cut for small businesses, visits local shops with Danny Trejo

This new tax relief is in addition to the support that Governor Newsom has already provided for small businesses and workers throughout the pandemic. In February, the Governor signed into law a comprehensive package of immediate actions that sped up much-needed relief to businesses suffering the most significant economic hardship due to COVID-19 – a package that provided $2.5 billion in grants worth up to $25,000 each for small businesses across California, more than half of which have gone to minority and underserved businesses.

For the full text of the bill, visit: • Contributed

Find your latest news here at the Hemet & San Jacinto Chronicle


Please enter your comment!
Please enter your name here

Share post:

Subscribe to The Hemet & San Jacinto Chronicle


More like this

Mister Cee, Pioneering Brooklyn D.J., Dies at 57

Mister Cee, a disc jockey who was an integral figure in New York City’s booming 1990s hip-hop scene and was an early champion of the Notorious B.I.G., has died. He was 57.

There’s more to the economy than unemployment rates

It took the Golden State a few months to take the lead, but we finally did it: as of February 2024, California finally caught up with Nevada and we are now the U.S. state with the highest unemployment rate at 5.3%.

16 arrested in Southern California prostitution sting operation

The Riverside County Sheriff’s Department conducted a “John” prostitution sting operation in the city of Perris and arrested 16 individuals.

Two Imperfect Messengers Take On Abortion

In the summer of 2019, as a crowded Democratic primary was picking up speed, Joe Biden was on the defensive, pummeled by abortion-rights groups...