California small business tax credit money left on the table
Entrepreneurs in California have the opportunity to receive a small business tax credit, but so far the fund has gone underutilized, the Los Angeles Times reports. The state created a $360 million fund to help small business owners increase payroll. However, little engagement from entrepreneurs throughout the state could force California to recoup the funds for its own budget deficit.
According to the Times, the program, which began in early 2009, was designed to motivate businesses to hire new workers. Two years later, only 10 percent of the appropriated money has been claimed.
State officials were reportedly confused by the notion that so many needy small business owners would leave money on the table - $3,000 worth - but the Times reports that many were simply incapable of adding staff or did not know of the credit's availability.
Michael Shaw, California legislative director for the National Federation of Independent Business, told the Times that economic uncertainty and a one-time tax credit would not be enough to motivate hiring. California currently faces a budget deficit of $25.4 billion.
According to the Times, the program, which began in early 2009, was designed to motivate businesses to hire new workers. Two years later, only 10 percent of the appropriated money has been claimed.
State officials were reportedly confused by the notion that so many needy small business owners would leave money on the table - $3,000 worth - but the Times reports that many were simply incapable of adding staff or did not know of the credit's availability.
Michael Shaw, California legislative director for the National Federation of Independent Business, told the Times that economic uncertainty and a one-time tax credit would not be enough to motivate hiring. California currently faces a budget deficit of $25.4 billion.
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