CALIFORNIA SMALL BUSINESS TAX CREDITS

SB 1447 Small Business Hiring Tax Credit:

On December 1, 2020, the California Department of Tax and Fee Administration (CDTFA) will begin accepting applications for tentative small business hiring credit reservation amounts through an online reservation system.

CDTFA SITE INFORMATION ON SB 1447

SB 1447: Franchise Tax Board Site

Taxpayers can use the credit against income taxes, or can make an irrevocable election to apply the credit against sales and use taxes.

To qualify for the credit, taxpayers (employers) must:

  • Have 100 or fewer employees on December 31, 2019 (all employees, including part-time employees).
  • Have experienced a 50% decrease in gross receipts from April to June, 2020, compared to the gross receipts in April to June 2019.
  • Apply for a tentative credit reservation from CDTFA during the period of December 1, 2020 through January 15, 2021.
  • Not be required or authorized to be included in a combined report.

CA FTB SITE INFORMATION

Senate Bill No. 1447

LEGISLATIVE COUNSEL’S DIGEST

VIEW SB 1447

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