(a) For taxable years beginning on or after January 1, 2020, and before January 1, 2030, gross income does not include any of the following grant allocations:
(1) Grant allocations received by a taxpayer pursuant to the COVID-19 Relief Grant that is administered by the Office of Small Business Advocate, is funded by Executive Order No. E 20/21-182, and is described in a letter from the Department of Finance to the Joint Legislative Budget Committee, dated December 17, 2020, entitled, “Disaster Response-Emergency Operations Account Request—Increased Funding for the California Rebuilding Fund and Funding to Support a New COVID-19 Relief Grant for Small Businesses.”
(2) Grant allocations received by a taxpayer pursuant to the California Small Business COVID-19 Relief Grant Program established by Section 12100.83 of the Government Code.
(b) Section 41 shall not apply to the exclusion allowed by this section.
(c) Notwithstanding any other law, the Franchise Tax Board may include in audits the grants referenced in this section.
(d) The Franchise Tax Board may adopt regulations that are necessary and appropriate to implement this section.
(e) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any regulation, standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.
(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed.
(Added by Stats. 2021, Ch. 7, Sec. 4. (SB 87) Effective February 23, 2021. Repealed as of December 1, 2030, by its own provisions.)