Update on California COVID-19 Relief
Here is an update from one of my news feeds regarding relief payments for certain businesses.
There is a link for more information of the types of businesses that may qualify for potential relief Grants.
Many of you will probably NOT qualify…but this is good information to have for your friends and neighbors.
Also….we are expecting a decision on conformity with Federal provision to allow deductions on the PPP qualifying payments by the end of the week!!!!
The allowance would be up to $150k in deductions that qualified for forgiveness. I know that many of you are above that amount…and many are below.
At this point…any businesses that want to file before this law is passed….I’ll be extending the CA returns…and file the Federal returns…waiting for that CA decision.
Much easier to avoid amendments at this point.
Here is the read:
California COVID-19 relief payments coming but no PPP deductions yet (02-23-21)
The Governor has announced he will sign two bills today that will provide cash payments to qualified small businesses impacted by COVID-19 and lower-income families. The Legislature is still negotiating a PPP/EIDL conformity bill that would allow businesses to deduct expenses paid with these loans/grants. It is hoped that this bill will be passed by the end of this week.
Yesterday, the Legislature passed the following bills:
- SB 87 would codify and provide an additional $2 billion to expand on the California Relief Program implemented under the Governor’s Executive Order E 20/21-182. The program provides grants of up to $25,000 for qualified small businesses (including nonprofits) with annual gross revenues of more than $1,000 and less than $2.5 million. These payments will be exempt from California tax are subject to federal tax. Details about the program are available at: https://careliefgrant.com/; and
- SB 88 would provide one-time Golden State Stimulus payments and grants of $600 each to:
- Families with a qualified child who are eligible for the Earned Income Tax Credit;
- Families with a qualified child using Individual Taxpayer Identification Numbers (ITINs) and have income no greater than $75,000; and
- Taxpayers who received CalWorks, SSI/SSP, or Cash Assistance Program for Aged, Blind, and Disabled Legal Immigrants (CAPI) benefits.
Families who qualify under both #1 and #2 will receive grants of $1,200.