Governor Newsom Unveils Economic Package

Last week, Governor Gavin Newsom presented his $9.6 billion relief package designed to give a boost to struggling California companies and families. In summary, the bill includes $600 payments to individuals earning less than $30,000/year and/or people who received an Earned Income Tax Credit in 2020. For the business community, over $2 billion will go to restaurants and small businesses in chunks of $25,000 grants, and bars and restaurants will have fee relief for two years. Additionally, businesses who received PPP money in 2020 will be able to deduct $150,000 of those funds in their taxes – a compromise sought following Chamber and coalition engagement on the nonconformity with federal law.