As Congress gets closer to possibly another economic recovery legislation, and the clamor to date has been for as much a $1 trillion in relief to state and local government, we’ve now entered FY 2021 budget. With tax receipts significantly reduced, every state and local government is facing some tough budget decisions. A quick look at two of our states shows drastic differences in how they will respond to the financial challenges. This week, the Louisiana legislature passed two bills HB 13 and HB 19, which will expand tax incentives to business (including retail, food service and hospitality) and create tax credits for opportunity zone investments. The goal of each of the initiatives is to help businesses recover from the economic devastation of COVID-19. At the other end of the spectrum, our most populous state in the union, California has a different focus. The Golden State enacted three bills (AB 85, AB 89 & SB 74) that comprise the $202 billion FY2021 budget this week. The revenue portion (AB85) raises taxes on businesses and suspends net operating loss deductions for individuals and businesses with income exceeding $1 million through 2022. Further, it limits business incentive credits that offset more than $5 million in tax liabilities. It leaves individual income tax benefits largely untouched, preserves certain sales tax exemptions and prior expansions of earned income tax credits and expanded credit eligibility for undocumented filers with young children. There are two sides to every coin as the old saying goes, but small business is the economic engine for our nation and in the words of former President Barack Obama: “Elections have consequences!”