MyFTB accountReminder: New credit to help small businesses November 2020 Tax News
In our October Tax News, we published an article about the new Small Business Hiring Credit (SBHC) (SB 1447) available for small businesses impacted by economic disturbances in 2020.
Taxpayers can use the credit against income taxes, or can make an irrevocable election to apply the credit against sales and use taxes. The credit is equal to $1,000 for each increase in qualified employees, as measured in monthly full-time employee equivalents. The total amount of credit for each employer cannot exceed $100,000.
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 from 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.
Visit Small Business Hiring Credit for additional information regarding these and other requirements for the credit.
Visit the California Department of Tax and Fee Administration’s website and search for small business hiring credit for information regarding:
- The tentative credit reservation
- Making the election to claim the credit against your sales and use taxes