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Gov. Newsom signs legislation to support small businesses

September 28, 2020


Earlier this month, Governor Gavin Newsom signed two California Medical Association (CMA)-supported bills aimed to help small businesses as they recover from financial impacts of the COVID-19 pandemic. Physician practices may be eligible for these tax credit and tax forgiveness provisions if they scaled employment down and up in response to COVID-19  or if they received support from the federal Paycheck Protection Program. CMA recommends you consult your tax professional if you believe your practice may qualify.

AB 1577 conforms state law to federal law by excluding from taxable gross income Paycheck Protection Program loans that were forgiven through the federal CARES Act and subsequent amendments in the Paycheck Protection Program and Health Care Enhancement Act of 2020. This bill was authored by Assemblymember Autumn Burke (D-Inglewood)

SB 1447 authorizes a $100 million hiring tax credit program for qualified small businesses. The hiring credit will be equal to $1,000 for each net increase in qualified employees, up to $100,000 for each qualified small business employer. This bill was authored by Senator Steven Bradford (D-Gardena), Senator Anna M. Caballero (D-Salinas) and Assemblymember Sabrina Cervantez (D-Corona).

 

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