Gov. Newsom visits LA County to sign major tax break for small businesses

California

LOS ANGELES COUNTY, Calif. (KTXL) — Governor Gavin Newsom is visiting Los Angeles County Thursday to sign legislation that would provide a $6.2 billion tax cut to small businesses as their owners try to pull themselves out of more than a year of closures.

Assembly Bill 80 was approved by the California Legislature earlier this week and would let small businesses deduct expenses associated with federal pandemic loans from their state taxes.

However, the bill only applies to certain businesses that experienced monthslong financial loss during 2020, leaving out roughly 15% to 20% of owners who received the loans.

According to lawmakers, Newsom’s administration said the tax break for everyone would have cost the state too much money.

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