Today is Presidents Day. It is a federal holiday so don’t expect to see your Tesla stock go up today; the stock market is closed, so you’ll have to wait until tomorrow. This also makes it a day that your banker doesn’t answer the phone and your mail doesn’t get delivered. So, let’s take this break in the action to make sure nothing is falling through the cracks.
For many business owners, this year is off to a blazing fast start. If it is PPP, your focus has been getting the second draw. For others, it has been working through the criteria of an Employee Retention Credit as applied through the CARES Act and subsequently through the Taxpayer Certainty and Disaster Tax Relief Act of 2020. For many small businesses, there is also the California Relief Grant, and recipients find out this week of they were awarded the grant. Because of the shiny objects of the PPP, ERC, and the CRG, lost in some of this is the California Competes Tax Credit, or CCTC (any more acronyms and I’m putting in a glossary). Yes, the big guys do benefit – Lockheed Martin got a $29 million tax credit last year, but the little guys can too. As an example, a small 4 person corporation received a $50,000 tax credit for moving its location but staying in California, and committing to hire 8 new employees over the next 5 years. For that commitment, the company received an annual $10,000 tax credit for 5 years against the taxes it would have paid to the State; it’s essentially a tax rebate. There are a lot of caveats but that’s not the point of this email. The point is to let you know that the next application window opens March 8. Yes, you have three weeks to figure this out. Or you can ask me.