California Small Business tax Credits

 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. 

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.

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