Last week, the Governor announced a whopping $75 billion budget surplus; add another $25 billion from the federal CARES Act and California’s fiscal future is bright.
Small business recovery ranks high in the priorities – along with meeting the needs of lower and middle-income Californians, homelessness and public schools.
In case you haven’t heard, the budget includes another $1.5 billion for the California Relief Grant program, for a total of $4 billion. This is in addition to a $6.2 billion tax cut approved by the Legislature and signed by the Governor in April. According to the Governor, this is the largest state tax cut of its kind in history, and certainly the most significant one for those businesses hit hardest by the pandemic. Other small business proposals include:
- Increasing the CalCompetes tax credit program to $360 million, and establishing a one-time $250 million grant program, to incentivize businesses to relocate to California.
- $250 million investment in California’s ports to address revenue loss and bolster future economic activity.
- $200 million to expand sales tax exclusions through the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to promote, grow and incentivize green manufacturing in California.
- $147 million for the Main Street Small Business Tax Credit to assist small businesses that have hired and retained workers since the second quarter of 2020.
- $95 million to jumpstart California’s tourism industry, one of the largest economic drivers in the state that was particularly impacted by the pandemic.