The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - Because Opportunity Zone investments can be made anywhere in the country, California ’s Opportunity Zones are competing with zones in other states for investment. Arguably, creating a state Opportunity Zone benefit could help draw investment to California from other states by making California
https://lao.ca.gov/Publications/Report/4038

Evaluating State Economic Stimulus Proposals

Feb 1, 2021 - Be Cautious of Unintended Interactions. Unintended interactions between a new stimulus program and other federal, state, and local programs can reduce its effectiveness. Policymakers should carefully consider these potential interactions.
https://lao.ca.gov/Publications/Report/4331

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - For awards made between 2014 and 2020, the recapture rate is almost 55  percent. This indicates that around half of the net job increases and investments promised in negotiated agreements ultimately never come to fruition or are not maintained long term.
https://lao.ca.gov/Publications/Report/5162

Evaluation of a Sales Tax Exemption for Certain Manufacturers

Dec 11, 2018 - Assumes No Offsetting Emissions Increases Due to Policy Interactions. As described in the “Assessment ” section, interactions with other environmental policies —such as cap ‑and ‑trade and the Low Carbon Fuel Standard —could negate some of the emissions reductions that otherwise would result from the exemption.
https://lao.ca.gov/Publications/Report/3907

The 2019-20 Budget: Tax Conformity

Mar 6, 2019 - Any state tax benefit provided would be a “windfall ” to investors because they likely would have made the investment even without the state benefit. Moreover, if the federal tax incentive is insufficient to encourage investment in affordable housing and green technology, a similar state tax benefit likely would not change investors ’ choices.
https://lao.ca.gov/Publications/Report/3959

A Key Interaction Between Sales Taxes and Other Taxes on Cannabis Retailers

Dec 17, 2019 - A Key Interaction Between Sales Taxes and Other Taxes on Cannabis Retailers December 17, 2019 A Key Interaction Between Sales Taxes and Other Taxes on Cannabis Retailers In this post, we discuss a key interaction between sales taxes and other taxes on cannabis retailers —in particular, local business taxes.
https://lao.ca.gov/Publications/Report/4124

The 2018-19 Budget: California Hiring Tax Credits

Mar 15, 2018 - (The number of taxpayers claiming the credit exceeds the number of affiliated businesses because pass ‑through businesses, such as partnerships and LLCs, generally have multiple investors and each investor may claim a proportional share of the credit.)
https://lao.ca.gov/Publications/Report/3784

How High? Adjusting California’s Cannabis Taxes

Dec 17, 2019 - (As discussed in our related online post, A Key Interaction Between Sales Taxes and Other Taxes on Cannabis Retailers , moving the point of collection to the retail level could give the state an opportunity to create a uniform tax base across multiple retail taxes.)
https://lao.ca.gov/Publications/Report/4125

The 2025-26 Budget: Governor’s Office of Business and Economic Development

Mar 18, 2025 - To understand program impacts and to prioritize future investments, employm ent opportunities can be randomly offered to eligible participants when there are more candidates than jobs available. Using program and state administrative data, third-party evaluators can then follow both participants and randomly rejected candidates to determine whether the program improves outcomes.
https://lao.ca.gov/Publications/Report/5018

The 2022-23 Budget: Governor’s Office of Business and Economic Development Proposals

Feb 11, 2022 - Other units assist international investors, help businesses obtain information about business permits , administer the California Competes Tax Credit Program, and administer the Cannabis Local Equity Grant Program.
https://lao.ca.gov/Publications/Report/4529