The California Chamber of Commerce today issued the following statement in response to Governor Gavin Newsom’s signature on AB 80 (Burke; D-Inglewood), a measure that will bring California into partial conformity with the federal government’s treatment of deductible business expenses paid using Paycheck Protection Program (PPP) funds:
“We commend the leadership of the Governor and the Legislature in providing federal tax conformity for many of the 750,000 businesses in California that received Paycheck Protection Program loans to survive the pandemic,” said Allan Zaremberg, President and CEO of the California Chamber of Commerce.
“The Governor’s signature today on AB 80 today is particularly welcome news for companies in the restaurant, hospitality, lodging, and tourist-based industries who have been dealing with devastating financial consequences from the pandemic for more than a year. While the bill exempts publicly traded companies and businesses that didn’t suffer a 25 percent loss in revenues, it will help those most impacted by devastating financial losses associated with COVID-19 shutdowns to stay afloat as we emerge from the pandemic. The key to a full economic recovery in California will be a continued focus on actions that support small businesses and provide them with needed regulatory and financial relief,” said Zaremberg.
The California Chamber of Commerce (CalChamber) is the largest broad-based business advocate to government in California. Membership represents one-quarter of the private sector jobs in California and includes firms of all sizes and companies from every industry within the state. Leveraging our front-line knowledge of laws and regulations, we provide products and services to help businesses comply with both federal and state law. CalChamber, a not-for-profit organization with roots dating to 1890, promotes international trade and investment in order to stimulate California’s economy and create jobs. Please visit our website at www.calchamber.com.