California business owners received additional tax relief on Friday, April 30, when Governor Gavin Newsom signed Assembly Bill (AB) 80 — a COVID-19 economic recovery package that provides up to $6.8 billion in state tax breaks for California businesses.

Under AB 80, forgiven PPP loans that businesses received from the federal government during the pandemic will not be counted as taxable income, which means businesses that received those loans — and meet certain requirements — can deduct the costs of expenses for those loans. AB 80 also applies to Economic Injury Disaster Loans (EIDL) targeted and advance grants.

According to state officials, the tax breaks will apply to 85 percent of the more than 1 million California businesses that received a combined $97 billion in federal loans. That’s about $96,700 for each business.

Does Your Business Qualify?

To deduct expenses paid with PPP loan forgiven amounts, your business must have Continue reading… Continue reading… Continue reading…