The Governor and legislative leaders announced that they have reached a budget deal. Major tax-related items contained in the deal include:
- An elective passthrough entity tax, which provides a work-around to the $10,000 SALT deduction limitation for owners of passthrough entities;
- An extension of the small business Main Street Hiring Credit;
- A second round of Golden State Stimulus payments of up to $1,100 for taxpayers with AGI of $75,000 or less;
- Increased funding for the California Competes Credit, and enactment of a new California Competes Grant Program; and
- Additional California Relief Grants for microbusinesses and nonprofit cultural institutions.
These provisions are contained in draft legislation that has not yet been enacted, although it is anticipated that these bills will be passed within the next week or two. We will send a follow-up Flash E-mail with more details when the budget legislation is actually enacted.
These provisions are contained in AB 139, AB 150, AB 151, and SB 139, which may all be found at: