SACRAMENTO – Governor Gavin Newsom recently previewed his Equitable Recovery for California’s Businesses and Jobs plan, the business and workforce recovery elements of his 2021-22 State Budget that will help California through the COVID-19 pandemic and advance an equitable, broad-based recovery.
Building on actions the state has taken to support California’s businesses throughout the pandemic, including emergency aid and regulatory relief, these proposals double down on the Newsom Administration’s commitment to rebuilding the economy, with investments across sectors and benefits for businesses of all sizes.
“California’s economy is known the world over for our innovation, inclusion and resilience. That spirit will carry us through this pandemic and beyond,” said Governor Newsom. “These budget proposals reflect our commitment to an equitable, broad-based recovery that ensures California remains the best place to start and grow a business – and where all Californians have an opportunity to reach their dreams. I look forward to continuing to partner with the Legislature to advance these priorities so our economy can emerge stronger, fairer and more prosperous than before.”
The budget includes $ 1.5 billion to help people and businesses buy vehicles and electrical or hydrogen equipment and invest in the construction and maintenance of recharge and supply infrastructure that would be needed to support the expansion of the use of these vehicles in the state.
Zero-Emission Vehicles and Zero-Emission Vehicle Infrastructure
Building on California’s historic commitment to requiring sales of all new passenger vehicles to be zero-emission by 2035, this Budget proposes an additional $1.5 billion investment to accelerate our state’s progress toward these goals while creating jobs. The proposal will support jobs and economic growth and provide air quality benefits and support for low-income Californians to purchase cleaner vehicles. Funds will support purchases of clean trucks, buses and off-road freight equipment and Clean Cars 4 All programs. It will also support job-creating construction of electric charging and hydrogen fueling stations necessary to accelerate zero-emission vehicle adoption. The Budget proposal will leverage additional private sector capital to build the necessary infrastructure and create jobs to support California’s recovery.
These 2021-22 Budget proposals build on the Newsom Administration’s work to support California’s businesses and workers. Among many actions, the Administration waived the $800 minimum franchise tax – often a costly barrier for start-up businesses – for the first year of operation. The Administration in November also extended up to billions in immediate, temporary tax relief to businesses impacted by COVID-19 by extending deadlines for paying sales taxes for smaller businesses and expanding interest-free payment options for larger businesses particularly affected by significant restrictions on operations due to COVID-19.