Governor signs paid sick leave extension and expanded relief package for small businesses
Governor Newsom signed legislation extending COVID-19 supplemental paid sick leave for workers, and early budget action to provide an additional $6.1 billion in tax relief, tax credits and direct grants for small businesses hit hard by the pandemic, bolstering the state’s historic COVID relief efforts and investing in California’s iconic entrepreneurial economy.
Employees continue to have access to up to 80 hours of COVID-19 supplemental paid sick leave through Sept. 30, 2022, which may be used by employees who have been advised to quarantine, those caring for COVID-impacted family members, attending a COVID-19 vaccination appointment, and more. Small businesses employing 25 or fewer workers are exempt from the legislation, which is retroactive to sick leave taken beginning January 1, 2022.
Building on last year’s support for small businesses impacted by the pandemic — including $6.2 billion in tax relief for small businesses that received Paycheck Protection Program loans — Governor Newsom today signed SB 113 to provide an additional $6.1 billion in tax relief, tax credits and direct grants to the hardest hit businesses. SB 113 includes provisions that:
- Provide a nearly $500 million tax cut for restaurants and venues: By conforming state tax policy for the federal Restaurant Revitalization Fund and federal Shuttered Venue Operators grant programs, grants received by such businesses will not be considered taxable by the state – translating into a tax cut totaling nearly $500 million over the coming years.
- Restore $5.5 billion in tax credits and deductions for California businesses: By restoring business tax credits, including for research and development and the net operating loss deduction for businesses one year early, the near-term benefit for such businesses is estimated to reach $5.5 billion.
- Invest $150 million in COVID-19 relief grants for California’s small businesses: SB 113 invests an additional $150 million in California’s Small Business COVID-19 Relief Grant Program to fund applicants on the waitlist – the program has provided grants of up to $25,000 for small businesses impacted by the pandemic.
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