CA SB851

Increases the maximum credit for residents who paid taxes to another state by the amount their net tax is reduced by the Small Business Relief Act credit for taxable years beginning January 1, 2022 through December 31, 2025.

Modifies payment requirements for the elective tax under the Small Business Relief Act, requiring qualified entities to make installment payments starting June 15th each year (50% of prior year's tax or $1,000 minimum, whichever is greater) with final payment due by the original return due date.

Requires qualified entities to make the June 15th payment to be eligible to make an election under the Small Business Relief Act for that taxable year.

Exempts this bill from the requirement to include specific goals, purposes, objectives, and performance indicators typically required for new tax expenditures, instead declaring that the goal is to provide tax relief to small businesses facing economic hardship from COVID-19.

Takes effect immediately as a tax levy.