By Bo Tefu | California Black Media
California lawmakers have approved Assembly Bill (AB) 80 legislation spearheaded by Assemblymember Autumn Burke (D-Inglewood). The legislation will give a $6.2 billion tax cut to small businesses across the state that received loans under the federal government’s Paycheck Protection Program (PPP).
California lawmakers approved the bill, they say, to safeguard the financial future of small businesses as a supplement to the American Families Plan proposed by President Joe Biden in March this year. AB 80, signed by Gov. Gavin Newsom protects small businesses that received PPP loans from the federal government by ensuring that the loans will not count as taxable income. Expenses covered by the federal funds are also tax deductible under this legislation.
State legislators passed a unanimous vote on the tax, “marking it as one of largest tax cuts in state history,” Burke said on Facebook.