Senator Dave Min (D-Irvine) announced his Senate Bill (SB) 408 advanced out of the Senate Governance and Finance Committee today with unanimous, bipartisan support.
As new reports indicate small businesses are at risk of being left behind in the economic recovery efforts, the bill establishes a tax credit available for restaurants and hospitality firms across the state.
“I’m grateful to my colleagues for passing my SB 408, advancing this critical measure to provide additional, targeted small business relief with unanimous, bipartisan support,” Min said. “My colleagues and I have worked hard to ensure there are lifelines available to struggling small businesses, but additional help is needed, particularly for family-owned restaurants and hospitality firms. This bill could potentially make the difference between a business that stays open and a business that has to shut their doors.”
Sean Venus, owner and operator of Venus Spirits in Santa Cruz offered witness testimony today. Venus Spirits was hit hard with mandated restaurant closures and the CZU lightning fires. Because the business was not a legacy business from 2019, they were unable to take advantage of many federal and state programs.
“Thank you Senator Min for authoring this important legislation,” Venus said during testimony. “I am supportive of SB 408 because it will serve as an important lifeline for my business and businesses across the state.”
SB 408 creates a $10,000 tax credit for restaurants and hotels with $5 million or less in gross receipts who had to close for 30 consecutive days due to COVID.
The final vote count for SB 408 was 5-0. The measure heads to Senate Appropriations Committee next.