Over $60 million in small business hiring credits still available - Spidell

Over $60 million in small business hiring credits still available


On Tuesday, December 1, 2020, the CDTFA began taking reservations for the $100 million available in small business hiring credits (e.g., Main Street Small Business Tax Credit) available to small businesses that suffered a significant decline in gross receipts due to COVID-19.

The credit is equal to $1,000 per increase in full-time equivalent employees from the second quarter of 2020 compared to the FTEEs employed during the period July 1, 2020, through November 30, 2020. The credit may be claimed against either the personal income/corporation franchise or income taxes or, at the election of the taxpayer, against sales and use taxes. The credit must be reserved with the CDTFA regardless of whether it is claimed against income/franchise taxes or sales and use taxes.

Credit reservations will only be taken until the earlier of January 15, 2020, or until the $100 million in available credits is reserved. As of the morning of December 4, 2020, over $32 million of available credit has already been reserved, leaving over $67 million still available.

For more information, and to reserve the credit, go to:

https://cdtfa.ca.gov/taxes-and-fees/SB1447-tax-credit.htm