Sacramento, CA — Mother Lode Republican Senator Andreas Borgeas says he is hoping that businesses and non-profits which receive COVID-19 grants or loans will not be hit with a big tax bill.
Currently, grants provided by the state’s COVID-19 small business relief grant program are considered taxable income. Borgeas has introduced Senate Bill 265 which would make grants for businesses and non-profits impacted by COVID-19 non-taxable.
“People, businesses and entities that have received assistance during the pandemic should not be penalized by the state,” said Senator Borgeas. “SB 265 would assist struggling businesses that received COVID-19 relief funds by assuring that these grants and/or forgivable loans are tax-free.”
It is a provision to his earlier Senate Bill 74, entitled the “Keep California Working Act.” That piece of legislation would allocate an additional $2.6-billion of surplus budget revenue as grants to businesses impacted by the pandemic.
Written by BJ Hansen.
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