SACRAMENTO, Calif. — The California Legislature is delaying a bill that would give a tax break to businesses.
The $1.9 trillion federal coronavirus relief bill President Joe Biden signed into law includes a provision barring states from using the money to pay for tax cuts. A bill before the California Legislature would exempt some federal aid from state taxes.
California Gov. Gavin Newsom's administration is worried the U.S. Treasury Department might view the bill as a tax cut and require the state to pay back some of the stimulus money it is owed.. A spokesman for the U.S. Treasury Department told The Associated Press this week the law only prevents states from using federal aid to offset losses from tax cuts.
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