Tax Breaks For Small Businesses

I am proud to join with my colleagues to pass bipartisan, urgency legislation that will provide significant and immediate tax breaks for our small businesses.

AB 80 will allow eligible businesses to deduct expenses that were paid for using forgiven Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) funds.

Business owners can already deduct these loan expenses from their federal taxes, and now they will be able to deduct them from their California state taxes as well.

Without this measure, many businesses would owe taxes on the very relief sent to help them remain operational and pay employee salaries during the pandemic.

While this bill does not bring CA eligibility into full conformity with federal law, immediate relief is needed to assist as many struggling businesses as possible.

It is absolutely imperative that we keep our small businesses open and protect local jobs. These tax breaks will further assist them on the path to recovery.

It is a privilege to be your Representative in the State Assembly.