California Legislature OK’s Tax Break For Small Businesses

SACRAMENTO, Calif. (AP) – The California Legislature has approved a major tax break for small businesses. The bill would let some small businesses deduct expenses associated with federal coronavirus loans from their state tax bills. The bill would reduce the state’s revenue by up to $6.8 billion over the next six years. The bill only applies to businesses that are not publicly traded and had a loss of at least 25% during one quarter of 2020. Assemblywoman Autumn Burke said that means between 15% and 25% of businesses that got the loans wouldn’t get the tax break. She said it would have cost more than $8 billion to give the tax break to everyone.