SACRAMENTO, Calif. - More COVID-19 relief is coming for small business owners in Northern California as Gov. Gavin Newsom signed legislation for a $6.2 billion tax cut.
The relief will not come immediately, the aid will be distributed over the next six years.
Newsom approved the plan on Thursday while visiting local shops at San Fernando Valley in Southern California.
This is all part of Assembly Bill 80, by Assemblymember Autumn Burke (D-Inglewood).
This means the forgiven PPP loans that businesses received from the federal government will not be counted as taxable income.
If you are a business owner you can also deduct the cost of expenses that those loans paid for.
"But again, limited to companies that are not public and limited to companies that experienced significant loss associated with this pandemic," Newsom said.
The state of California is home to more than four million small businesses.
This is not the first time Newsom has signed legislation for small businesses.
Back in February, he approved a $2.5 billion package where small businesses were able to get up to $25,000 worth of grants.