2021 Main Street Small Business Tax Credit II
Claiming Credit

For Sales and Use Tax

Your 2021 Main Street Small Business Tax Credit II will be available on February 1, 2022. You will be able to apply your credits against your sales and use tax liabilities for reporting periods starting with returns due on April 30, 2022, and any subsequent returns, until they are exhausted or until April 30, 2027, whichever comes first. Remaining credits cannot be refunded.

I received my confirmation for a tentative credit amount. Where can I see my credit balance?

On February 1, 2022, your credits will be posted in your California Department of Tax and Fee Administration (CDTFA) online services account. To view your credit balance, you must log in using your username and password and select your eligible sales and use tax account. Proceed to the I Want to section, select More, and then select View Main Street Small Business Tax Credit Balance. You will also be able to view any remaining credits from the 2020 Main Street Small Business Tax Credit program.

How do I apply my tax credits to amounts due on my return?

When you file your tax return, you will subtract your available credits from the tax due, excluding penalty and interest, to determine the amount of payment you need to make. (There will not be a separate line for the credits on your return.) If your credits do not cover the total tax amount due, you must pay the remaining tax balance. If your credits meet or exceed the total tax amount due, no payment is required. You may continue to use the remaining credits for subsequent filing periods until they are exhausted, or until April 30, 2027, whichever comes first.

  • Quarterly Filers. Your credits must be applied to taxes due and payable for the quarter beginning on January 1, 2022, and ending on March 31, 2022, with a due date on April 30, 2022.
    • If you are required to make quarterly prepayments, credits may be applied to prepayments beginning in the first quarter of 2022. If your available credits are sufficient to fulfill the prepayment amount due, there is no need to submit an additional payment. If your available credits are less than the prepayment amount due, then you must pay the remaining prepayment balance.
    When filing your quarterly return, enter the prepayment amounts for that quarter, including amounts fulfilled with tax credits.
  • Monthly Filers. Your credits must be applied to taxes due and payable for the month beginning on March 1, 2022, and ending on March 31, 2022, on the return due on April 30, 2022.
  • Annual, Fiscal Year, or any other reporting basis filers. Your credits must be applied to taxes due and payable on the first return due on or after April 30, 2022.

Note: Remaining credits from the 2020 Main Street Small Business Tax Credit I program must be exhausted before the 2021 Main Street Small Business Tax Credit II credits apply.

I am required to make payments by Electronic Funds Transfer (EFT). Will I be penalized if my credits are used to fulfill my prepayments or return payment?

If credits are used to fully pay your liability, including prepayments, you will not be assessed a penalty. However, if the credits are insufficient to pay the tax amount due, you must pay your remaining balance by EFT.

For Personal Income or Corporate Taxes

Please visit the Franchise Tax Board's 2021 Main Street Small Business Tax Credit II webpage.