Financial Relief to Qualified Small Businesses with Main Street Small Business Tax Credit

Taxpayers can use the credit against income taxes or can make an irrevocable election to apply the credit against sales and use taxes.

To qualify for the credit, taxpayers (employers) must:

• Have 100 or fewer employees on December 31, 2019 (all employees, including part-time employees).
• Have experienced a 50% decrease in gross receipts from April to June, 2020, compared to the gross receipts in April to June 2019.
• Apply for a tentative credit reservation from CDTFA during the period of December 1, 2020 through January 15, 2021.
• Not be required or authorized to be included in a combined report.
• The credits are allocated by CDTFA on a first-come, first-served basis until the credits are exhausted at $100 million.

All taxpayers (including those electing to use the credit to offset qualified sales and use taxes) must reduce any deduction otherwise allowed for qualified wages by the amount of the credit allowed. Learn more here.