California Creates $100 Million Hiring Tax Credit for Small Businesses. SB 1447 allows businesses with 100 or fewer employees to receive a tax credit of $1,000 per net new hire after July 1, 2020, compared to their workforce in the second quarter of 2020. This credit can be applied against personal and corporate income tax liabilities or sales and use tax liabilities for the 2020 tax year. Eligible small businesses must have experienced a 50% decline in gross receipts between 2020 and 2019 (second quarter), and must reserve tax credits beginning December 1, 2020, and before January 15, 2021, with the California Department of Tax & Fee Administration. Total credits to an individual business are capped at $100,000 in maximum credit, and the program total for this tax credit is $100 million.
