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Coronavirus Tax Coverage

California A.B. 176, signed into law as Chapter 256, makes changes to COVID-19 relief programs administered by the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development, including amending the definition of qualified small business; excluding from gross income grant allocations received under the California Venues Grant Program; and adjusting the eligibility requirements for tax credits for hiring recently homeless employees.
California S.B. 151, signed into law as Chapter 74, enacts several government administrative changes, including establishing the California Microbusiness COVID-19 Relief Grant Program within the Office of the Small Business Advocate; revising the California Small Business Development Technical Assistance Expansion Program; creating a California Competes Grant Program; and broadening the scope of the misdemeanor for specified Franchise Tax Board employee misconduct.
The U.S. Department of Justice filed a brief urging the Sixth Circuit Court of Appeals to reverse a lower court's decision that granted Ohio a permanent injunction against the U.S. Treasury Department regarding a provision in the American Rescue Plan Act (P.L. 117-2) that limits states' tax policy options as a condition of receiving federal COVID-19 relief funds, arguing that Ohio failed to establish a constitutional controversy over the offset provision and that the state's challenge is "meritless."
The Tax Foundation released a report on the amounts that states have paid in unemployment benefits since the beginning of the COVID-19 pandemic and the current balances of state unemployment compensation (UC) trust funds; the report finds that states should prioritize using federal Fiscal Recovery Funds provided by the American Rescue Plan Act (P.L. 117-2) to replenish their UC funds to avoid “astronomically high” unemployment insurance tax rates on businesses.
The Kentucky Center for Economic Policy published an analysis of the child tax credit as “enhanced” by the federal American Rescue Plan Act (P.L. 117-2), urging Congress to make the policy — which allows eligible low-income households to claim the full amount of the increased credit and is currently set to expire at the end of the year — permanent to continue providing “vital” support to Kentucky families.
The attorneys representing the U.S. Treasury Department have filed a brief with the United States Court of Appeals, Eighth Circuit, in response to Missouri’s complaint asking the court to reverse the lower court’s dismissal of the state’s challenge against the "Offset Provision" in the federal American Rescue Plan Act (P.L. 117-2); the brief argues that Missouri has not established a “concrete dispute,” nor has it met the prerequisites for a preliminary injunction.