California Legislature OK's tax break for small businesses

SACRAMENTO, Calif. (AP) — The California Legislature approved a major tax break for small businesses on Monday, voting to give up as much as $6.8 billion in revenue over the next six years so that struggling business owners can have smaller bills. The federal government loaned more than $97 billion to California small businesses during the coronavirus pandemic, and most business owners did not have to pay that money back. Business owners used most of that money to pay the salaries of their employees, which prevented — or at least delayed — layoffs during the pandemic. In December, Congress said business owners could deduct expenses associated with those loans from their federal taxes. The bill that passed the California Legislature on Monday would let business owners deduct those expenses from their state taxes, too.