After spending a week touring the state and promoting a $100 billion pandemic recovery package — bolstered by a stunning $75.7 billion surplus and additional federal dollars — California Gov. Gavin Newsom presented the rest of his revised budget.
Newsom's latest proposal includes $1.5 billion to add another round of small business grants up to $25,000, for a total of $4 billion in small business aid.
This is in addition to a $6.2 billion tax cut approved by the Legislature and signed by the Governor in April. According to the Governor, this is the largest state tax cut of its kind in history, and certainly the most significant one for those businesses hit hardest by the pandemic.
Other small business proposals include:
- Increasing the CalCompetes tax credit program to $360 million, and establishing a one-time $250 million grant program, to incentivize businesses to relocate to California.
- $147 million for the Main Street Small Business Tax Credit to assist small businesses that have hired and retained workers since the second quarter of 2020.
- $95 million to jumpstart California’s tourism industry, one of the largest economic drivers in the state that was particularly impacted by the pandemic.
- $200 million to expand sales tax exclusions through the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to promote, grow and incentivize green manufacturing in California.
Watch Gov. Gavin Newsom's update on the budget proposal