California AB895 provides a tax credit to fast food restaurants to offset rising unemployment insurance costs.
California AB895, known as the Quick-Service Restaurant Affordability Act of 2025, provides a tax credit to qualified fast food restaurant owners to help offset rising unemployment insurance costs. The credit amounts to $12,000 per qualified fast food restaurant per year, for each taxable year beginning on or after January 1, 2026, and before January 1, 2031. To qualify, a restaurant must be subject to specific regulations and the taxpayer must be a franchisee or independent operator with no more than 45 locations under common ownership within California.
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