The California Legislature passed, and the governor signed, Senate Bill 1447 (click here for FTB Bill Analysis) into law creating a new small business hiring credit (SBHC) for small businesses impacted by economic disturbances in 2020. The Small Business Hiring Credit is also referred to as the “Main Street Hiring Credit”. Overview Taxpayers can use the credit against income taxes (personal income tax, corporation franchise or income taxes), or can make an irrevocable election to apply the credit against sales and use taxes. The credit is equal to $1,000 for each net increase in "Qualified Employees" (as outlined below), as measured in monthly full-time employee equivalents (FTEs). The total amount of credit for each employer cannot exceed $100,000. Taxpayers must get a tentative credit reservation from the California...