The long awaited recently announced California pandemic relief package includes the following benefit highlights for businesses and individuals:
- California partial conformity to federal tax treatment of Paycheck Protection Plan loans allowing companies to deduct up to $150,000 in expenses covered by the PPP loan (including Economic Injury Disaster Loan grants).
- Increase the funds available for the small business and nonprofit grant program (2018 or 2019 gross revenues less than $2.5M) from $500 million to more then $2 billion. Information regarding this grant program can be found at the following link: https://www.grants.ca.gov/grants/california-small-business-covid-19-relief-grant-program/.
- Two years of fee relief for restaurants and bars licensed through the state’s Department of Alcoholic Beverage Control as well as barbering and cosmetology individuals and businesses licensed through the Department of Consumer Affairs.
- Direct relief to individuals and families by providing $600 in one-time payments to California low income households.
- Additional aid for child care, agricultural workers, community colleges and students.
The California press release can be read at the following link: https://www.gov.ca.gov/2021/02/17/governor-newsom-legislative-leaders-announce-immediate-action-agreement-for-relief-to-californians-experiencing-pandemic-hardship/.
Please consult your tax advisor at WFY for further information regarding the developments of the California new proposed law. Click here to contact a WFY tax advisor.