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A letter from Assemblymember Jim Silva
Creating a better tomorrow for California's small businesses
Dear Community Members,
With the unemployment rate skyrocketing and the costs of running a business in California spiraling out of control, your Legislature needs to work together to ensure that creating jobs for tomorrow is a priority today.
During the February budget negotiations, a tax credit was introduced for small business that will grow the local economy and help business thrive. Assembly Bill 15XXX was introduced to help businesses stay in California. Among many tax- cutting portions of this bill, a $3,000 credit was created for small businesses that employ 20 people or less. The bill allows for this credit to be applied for each full-time employee hired by the small business.
This means that if a small business with 15 employees hires an additional 5 new full-time people, they will receive $15,000 in tax credits. This tax credit will remain in effect until the Franchise Tax Board determines that the amount of tax credits granted to small businesses reaches $400 million. Businesses will also be able to carryover these credits for seven years.
California needs to do all it can to improve its business climate. This bill creates a needed incentive for businesses to stay in California and to hire hard-working Californians to fill needed positions.
For more information on this tax credit please visit The Franchise Tax Board's website at www.ftb.ca.gov.
Sincerely,
Assemblymember Jim Silva
