Gov. Newsom signs $6.2 billion tax cut bill for small businesses

FRESNO, Calif. (KFSN) -- Gov. Gavin Newsom signed a bill on Thursday giving small businesses hard hit by the pandemic a $6.2 billion tax cut over the next six years.

He signed into law while visiting Los Angeles County.

It's a move to help get small businesses across the state back on their feet and work toward economic recovery across California.

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Economists forecast that California will recover from the pandemic faster than the U.S. and showcase the resiliency of the Golden State's robust economy.

The PPP loans that businesses received from the federal government during the pandemic will not be counted as taxable income under the new legislation.

These businesses can also deduct the cost of expenses that those loans funded.

After signing the bill, Newsom then visited shops in Southern California with actor and restaurateur Danny Trejo.

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