CA AB150

Indefinitely extends sales and use tax exemptions for diapers and menstrual hygiene products that were previously set to expire July 1, 2023, with state making no reimbursement to local agencies for lost revenues.

Creates new small business hiring credits for taxable year 2021 providing up to $150,000 per employer ($1,000 per net new qualified employee), with $70 million available and option to apply credits against sales/use taxes instead of income taxes.

Establishes homeless employment tax credit for taxable years 2022-2026 allowing employers to claim $2,500-$10,000 per homeless worker hired (depending on hours worked), capped at $30,000 per employer per year with $30 million annual allocation.

Enacts Small Business Relief Act allowing partnerships and S-corporations to elect 9.3% tax on qualified net income for taxable years 2021-2025, with partners/shareholders receiving 9.3% personal income tax credit on their share of income subject to entity-level tax.

Increases CalCompetes tax credit allocation to $290 million for 2021-22 fiscal year and extends various other tax credits including food donation credits and historic rehabilitation credits through 2026-2027.