NEW TAX RELIEF BILLS HAVE BEEN SIGNED INTO ACTION BY THE GOVERNOR!
In addition to granting tax refunds of $700 to qualifying taxpayers with California AGI up to $250,000 ($500,000 HOH), this bill also authorizes up to $1,050 for MFJ taxpayers who have California AMI over $500,000. The only downside is the payments will not arrive until the end of October (at the earliest).
There are many things this bill offers, but here are some of the highlights:
This bill will:
- Provide an extension to California’s partial conformity to the federal treatment of Paycheck Protection Program loan forgiveness. It will do this by letting Californians apply to PPP loans approved after March 2021. It should be noted that the taxpayer should file an amended return if they have already filed their 2021 tax returns and included the PPP loan forgiveness as taxable COD income.
- Offer First-time late-filing penalty abatement for individual taxpayers beginning on or after January 1, 2022. A taxpayer who filed all returns and paid or entered into an installment agreement for all outstanding tax liabilities (except the late-filing penalty) is eligible for the first-time penalty abatement. The California penalty abatement program is different from the federal first-time abatement program; penalty abatement can only be applied once in a lifetime instead of once every four years.
- Eliminate diesel fuel’s sales and use tax for the period October 1, 2022, through October 1, 2023.
- Provide the 2020 and 2021 Main Street Small Business Tax Credit as an option to claim it on an amended tax return.
- Extend the California Competes Tax Credit by five years through the 2027–28 fiscal year.
Cannabis cultivation taxes will be suspended under this bill, and cannabis excise taxes will continue to be collected at the point of sale rather than from distributors.
Looking for more information on these bills? Follow the link below:
Please contact us if you have any questions.