2021 Main Street Small Business Tax Credit II
Reserving Credit

The 2021 Main Street Small Busines Tax Credit II reservation process is now closed.

Important

The online reservation system will be available from 8:00 a.m. November 1, 2021, through 11:59 p.m. November 30, 2021, or earlier date if the allocation limit is reached.

You must have all the information listed below to complete the application for a tentative credit reservation amount through the online reservation system. If you are unable to complete your application, you will be able to save your progress, exit the application, and retrieve it at a later time.

Tentative credit reservations are allocated on a first-come, first-served basis. The order in which reservations are allocated is based on the date and time when the application is completed and submitted in the system, not when you begin the application process. After submission of your application, you will promptly receive an email acknowledging receipt of your application and confirmation number. However, if credits have been exhausted when your application is submitted, you will be placed on a waiting list.

The online reservation application will perform all the qualification and tax credit calculations. All you need to do is enter the following required information:

  • Valid email address
  • Irrevocable election to apply the credit to:
    • Personal and/or Corporate Income Tax, or
    • Sales and Use Tax
  • Type of entity (Individual, Corporation, Partnership, LLC, S Corporation, etc.)
  • Entity identification number (SSN, FEIN, Corporation number, LLC number, etc.)
  • Business entity name or owner name
  • DBA (doing business as)
  • Business mailing address
  • Business phone number
  • If you make an irrevocable election to apply the credit to sales and use taxes, you will need to provide an active sales and use tax account number (seller's permit or certificate of registration - use tax) for the business entity.
  • EDD Employer Payroll Tax Account number (State Employer ID number (SEIN))
  • Number of employees as of December 31, 2020

To calculate the 20 percent decrease in income tax gross receipts -Total gross receipts for the following periods:

  1. For calendar year income tax filers
    • January 1, 2019 – December 31, 2019
    • January 1, 2020 – December 31, 2020
  2. For fiscal year income tax filers
    • Fiscal year 2018-2019
    • Fiscal year 2019-2020
    • Or, if using the calculation for average gross receipts
    • Fiscal year 2018-2019
    • Fiscal year 2019-2020 and Fiscal year 2020-2021 (used for average)
  3. For new businesses that started in 2019 (businesses started in 2020 not eligible)
    • January 1, 2020 – February 28, 2020
    • April 1, 2020 – June 30, 2020

To calculate the net increase in qualified employees

  • Total hours for all employees for each of the following months
    • April 2020 – June 2021
  • Total amount of salaried employees for each of the following months
    • April 2020 – June 2021
      • For salaried employees that worked less than full-time, you will need to enter the percentage of full-time. For example, if the salaried employee(s) worked ¾ time, you will need to select 75%.
      • For salaried employees that worked a partial month, will need to calculate total weeks employed for the group of employees that worked a partial month.
  • Have you received tax credits under the 2020 Main Street Small Business Tax Credit I program?