SACRAMENTO, Calif. (KGET) — Businesses across the state that have been impacted by the COVID-19 pandemic could soon get more relief.
Gov. Gavin Newsom said in a briefing today that the state is implementing an automatic three-month extension on tax returns for businesses filing less than $1 million in sales tax.
Newsom said the state is also expanding existing interest-free payment agreements for larger companies with up to $5 million in sales tax. The state is also expanding interest-free payment options for large businesses.
The governor also announced the creation of a $500 million COVID Relief Grant for small businesses that have been impacted by COVID-19 and the health and safety restrictions. Grants of up to $25,000 will be handed out to underserved small businesses throughout the state by early 2021.
Non-profits would also be eligible for these grants, according to the state.
“We have to lead with health to reopen our economy safely and sustainably while doing all we can to keep our small businesses afloat,” Newsom said. “With this financial assistance and tax relief, California is stepping up where the federal government isn’t. By providing potentially billions in immediate relief and support, our small businesses can weather the next month as we continue partnering with the Legislature to secure additional funding and investments in small businesses in the new year.”
Today’s announcements come as applications for the new Main Street Hiring Tax Credit, which authorizes $100 million in hiring tax credits for qualified small businesses is set to open Tuesday. The credit is equal to $1,000 per qualified employee, up to $100,000 for each small business employer.