Tax cuts for restaurants, other small businesses on the way under fast-tracked California law
California will give new tax cuts to businesses and new relief to restaurants under a package of bills Gov. Gavin Newsom signed Wednesday.
The measures, pushed quickly through the Legislature at the start of the year, will provide roughly $6 billion in relief for small businesses. Most of that money comes from $5.5 billion in tax credits and deductions.
“This much-needed tax relief is not only essential for the immediate help of employers, but it also creates a pathway and lays the foundation for long term economic recovery for our employers,” Jennifer Barrera, president of the California Chamber of Commerce, said during the bill signing event at an Oakland restaurant.
It also includes a half-billion dollars in tax cuts for restaurants, which have been hard hit by the coronavirus pandemic, as well as $150 million in grants for small businesses.
Newsom said this latest round of grants will provide money to 13,500 businesses that have struggled because of COVID-19. The money comes on top of billions of dollars he and lawmakers previously approved for business grants.
The business relief funding represents part of a deal that Newsom, lawmakers, unions and businesses struck to expand COVID-19 sick leave for employees. Businesses must shoulder those costs, but the tax credits and relief funds are meant to at least partially offset the added expense from the expanded sick leave.
In addition to the paid sick leave policy and the business relief funding, Newsom also signed a bill authorizing $1.9 billion for COVID-19 response, including added testing and vaccination efforts.
Newsom had requested $1.4 billion of that money last month, but as the omicron surge progressed he negotiated an increased amount with lawmakers. The money will fund expanded hours and personnel at testing sites and additional rapid tests for local health departments, community clinics and school.
This story was originally published February 9, 2022 at 12:19 PM.