SACRAMENTO (KGET) — Gov. Gavin Newsom signed three bills into law today, two aimed at supporting small businesses grappling with the impact of the COVID-19 pandemic and another to jump-start state construction projects.
Assembly Bill 1577 conforms state law to federal law by excluding from 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.
Senate Bill 1447 authorizes a $100 million hiring tax credit program for qualified small businesses. The credit will be equal to $1,000 for each net increase in qualified employees, up to $100,000 for each qualified small business employer.
“Businesses across the state have been hard hit by the COVID-19 pandemic and they need support to keep their doors open and their employees on the payroll,” Newsom said. “Today, we are taking action to keep money in the hands of small businesses while expanding job opportunities for those who lost their jobs because of this virus. We have much more work to do together, but I know these bills will make a big difference for small businesses.”
Lastly, Senate Bill 115 is a budget trailer bill from the Committee on Budget and Fiscal Review that appropriates $561 million in the 2020-21 fiscal year. This includes $411.5 million to advance economic stimulus with $230.5 million to help jump-start construction projects.