2022-31: Governor signs tax refund/relief bills


The Governor has signed three tax-related bills.

AB 192 (Ch. 22-51)

This bill authorizes up to $700 in tax refunds for qualifying taxpayers with California AGI of up to $250,000 ($500,000 HOH) and up to $1,050 for MFJ taxpayers with California AGI of up to $500,000). Unfortunately, the payments will not be sent out until the end October (at the earliest).

For more details, go to:

www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/middle-class-tax-refund.html#receive

AB 194 (Ch. 22-52)

Among other things, this bill:

  • Extends California’s partial conformity to the federal treatment of Paycheck Protection Program loan forgiveness to apply to PPP loans approved after March 2021 (AB 80’s 25% gross receipts reduction threshold would still apply to deduct expenses paid with these forgiven loans). Taxpayers who already filed 2021 tax returns and included the PPP loan forgiveness as taxable COD income should file amended returns;
  • Enacts a first-time late-filing penalty abatement program for individual taxpayers for tax years beginning on or after January 1, 2022. Only individuals who have filed all returns and paid or entered into an installment agreement for all outstanding tax liabilities (other than the late-filing penalty) qualify for the first-time penalty abatement. Unlike the federal first-time abatement program, California penalty abatement would only be available once in a lifetime rather than once every four years;
  • Enacts a partial sales and use tax exemption for diesel fuel for the period October 1, 2022, through October 1, 2023;
  • Allows the 2020 and 2021 Main Street Small Business Tax Credit to be claimed on an amended tax return; and
  • Extends the California Competes Tax Credit by five years, through the 2027–28 fiscal year.

AB 195 (Ch. 22-56)

This bill suspends the cannabis cultivation tax and requires the cannabis excise tax to be collected at the point of sale rather than from the distributor.

More information on all of these bills is available at:

https://go.spidell.com/e/837113/faces-home-xhtml/3lph9v/837326296?h=9PCo_pquuf3RFz8MmVU2fDrYDjTOE-R6crYRlGJayfc

Attend Spidell’s next Quarterly Tax Update webinar and get more information on these bills, along with other recent tax news. Click here for details.

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