Gov. Gavin Newsom has announced that the state will provide temporary tax relief for eligible businesses impacted by COVID-19 restrictions.
The plan includes an automatic three-month income tax extension for taxpayers filing less than $1 million in sales tax and extends the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales.
It also provides expanded interest-free payment options for larger businesses, particularly those affected by significant COVID-19 restrictions. A new $500 million COVID Relief Grant program pairs with an expanded California Rebuilding Fund.
"California’s small businesses embody the best of the California Dream and we can’t let this pandemic take that away," Gov. Newsom said in a news release. "We have to lead with health to reopen our economy safely and sustainably while doing all we can to keep our small businesses afloat. With this financial assistance and tax relief, California is stepping up where the federal government isn’t."
California is home to over four million small businesses.
The announcement comes as the governor and state health officials consider a stricter curfew for counties in the purple tier.
