California is providing tax relief during the pandemic. Billions in immediate, temporary tax relief will support businesses impacted by COVID-19, including an automatic three-month extension for taxpayers filing less than $1 million in sales tax, interest-free payment agreements to larger companies with up to $5 million in sales tax and expanded interest-free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions.
Additionally, there is a Main Street Hiring Tax Credit for qualified small businesses equal to $1,000 per qualified employee, up to $100,000 for each small business employer. Application can be made at this link, beginning today, December 1.
Following is a list of state and federal COVID-19 relief programs for businesses:
- Excluding forgiven Paycheck Protection Program loans from state gross income
- Federal tax credits to small businesses for COVID-19 employee paid leave
- Providing capital to the California Rebuilding Fund to support small business loans
- $50 million in state funding for the Small Business Disaster Relief Loan Guarantee Program and $50 million for the Small Business Loan Guarantee Program via IBank to provide loans to underserved small businesses
- Small Business Debt Relief for existing Small Business Administration (SBA) borrowers
- Federal small business stimulus programs like Paycheck Protection Program and Economic Injury Disaster Loans
- State-supported small business centers that provide direct assistance from a local advisor
- Authorization for local governments to halt evictions for commercial renters