AB 1842 Summary: California Works and Recovery Act

• Establishes earned income tax credit of up to 20% of annual revenue for small businesses and nonprofits impacted by COVID-19 pandemic, effective for taxable years beginning January 1, 2020, pending appropriation.

• Requires GO-Biz to consider overall economic impact of COVID-19 pandemic when determining whether to allocate California Competes Tax Credits beginning in 2020–21 fiscal year, upon appropriation.

• Requires Small Business Advocate to convene task force to research and report to Legislature on regulations most negatively impacting small businesses, upon appropriation.

• Directs State Personnel Board to include COVID-19 pandemic unemployment as recruitment and hiring factor for state civil service positions.

• Establishes multiple job creation and economic recovery programs upon appropriation: wildfire mitigation positions with hiring priority for COVID-displaced workers, California Conservation Corps membership expansion with priority for displaced workers, health profession residency expansion, food bank produce donation grants, shovel-ready housing/community development grants, shovel-ready transportation grants, and hospital seismic retrofit loans.