New COVID-19 Tax Credit Bill Introduced

By: Senator Marie Alvarado-Gil

Senator Marie Alvarado-Gil

(D-Jackson) introduced SB 375 to provide employers with financial relief from the cost of compliance with the new COVID-19 workplace safety standards that took effect in early February. SB 375 would provide an annual credit against state payroll taxes to reimburse employers for costs such as testing, masking, ventilation systems, exclusion from work, and other pandemic-based regulatory compliance costs.

“California still has some of the most rigid COVID-19 workplace standards in the country,” said Alvarado-Gil. “To the extent that our state government demands that California be the outlier, I believe the state should bear those costs, not employers who are still recovering from the shutdown in 2020.”

For three years, California employers have complied with stringent workplace safety requirements related to COVID-19. More than 61,000 California businesses permanently closed their doors during that time, and roughly 2.5 million Californians lost their jobs. SB 375 is supported by the California Association of Winegrape Growers (CAWG).

“Winegrape growers thank Senator Alvarado-Gil for her leadership in taking on this issue,” said Michael Miiller, CAWG’s Director of Government Relations. “Economic recovery from a global pandemic does not happen by