Small Businesses can reserve a credit now until November 30
The Main Street Small Business Tax Credit II will provide Covid-19 financial relief to qualified small business employers. On November 1, 2021, the California Department of Tax and Fee Administration began accepting applications for tentative small business hiring credit reservation amounts through CDTFA’s online reservation system. Qualified small business employers must apply with the CDTFA for a credit reservation.
The credit reservations will be allocated to qualified small business employers on a first-come, first-served basis. The reservation system will be available through November 30. 2021 or an earlier date if the allocation limit is reached. Qualified small business employers may apply to reserve $1,000 per net increase in qualified employees, not to exceed $150,000. Tentative credit reservation amounts will generally be reduced by credit amounts reserved or received under the first Main Street Small Business Tax Credit. Qualified small businesses will be able to offset their income taxes or their sales and use taxes with the credit when filing their returns.
Qualifications and more information can be found at CDTFA’s website: https://cdtfa.ca.gov/industry/main-street-small-business-tax-credit-II-AB150.htm
Credits can be reserved at https://taxcredit.cdtfa.ca.gov