California lawmakers on Monday approved the last part of a COVID-19 economic recovery package, sending the governor a bill he supports that provides up to $6.8 billion in state tax breaks for California businesses.
Gov. Gavin Newsom and lawmakers negotiated the provisions of the bill, which allows businesses to avoid paying state taxes on forgiven loans from the federal Paycheck Protection Program and to deduct expenses paid for using the loan funds.
“AB 80 provides significant and immediate tax relief to California businesses devastated by the coronavirus pandemic,” said Assemblywoman Autumn Burke (D-Marina del Rey), the author of the bill approved Monday by the state Assembly a week after it was acted on by the Senate.
State officials said the tax breaks will apply to up to 85% of the more than 1 million California businesses that received a combined $97 billion in federal loans, or an average of about $96,700 each.
Read the full story at LATimes.com.