The 2022-23 Budget: Temporary Limits on Business Tax Provisions

Jan 26, 2022 - Net Operating Loss Deductions Smooth Business Profits and Losses Over Time. Companies and individuals often incur operating losses associated with their business activities in some years. These companies are able to carry the net operating losses (NOLs) forward into future tax years and deduct NOLs from their operating income.
https://lao.ca.gov/Publications/Report/4500

CalFacts 2024 [Publication Details]

Dec 2, 2024 - CalFacts presents a wide range of facts and trends about the state's economy, finances, and programs.
https://lao.ca.gov/Publications/Detail/4942

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - First, some firms lack tax liability in California due to ongoing and substantial use of other tax deductions and credits, most commonly the Research & Development Tax Credit and the Net Operating Loss deduction.
https://lao.ca.gov/Publications/Report/5162

The 2026-27 Budget: CDTFA’s Cannabis and Tobacco Programs

Feb 23, 2026 - For example, in 2024 ‑25, $13.1  million of CDTFA ’s Cannabis Tax Program spending came from the Cannabis Tax Fund, while $3.1  million came from the General Fund. The administration tells us that this spending came from CDTFA ’s General Fund appropriation in the budget act.
https://lao.ca.gov/Publications/Report/5132

The 2025-26 Budget: CDTFA’s Tobacco Programs

Feb 14, 2025 - CDTFA ’s estimated cost to implement AB  3218 and SB  1230 is $3.3  million in 2024-25, $5.5  million per year in 2025-26 and 2026-27, and $3.1  million in 2027-28 and ongoing. The new laws create penalties that could raise revenue to offset some of these costs.
https://lao.ca.gov/Publications/Report/4966

The 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - This is a net increase of $5  million (3  percent) over the revised 2024-25 level. (This does not reflect some adjustments related to Control Sections 4.05 and 4.12 of the 2024-25 and 2025-26 budgets.
https://lao.ca.gov/Publications/Report/5081

Evaluation of a Sales Tax Exemption for Certain Manufacturers

Dec 11, 2018 - Some of these assumptions overstate net benefits, while others understate them. Overall, they tend to err on the side of overstatement. Assumptions That Overstate Net Benefit Omits Some Fiscal Effects.
https://lao.ca.gov/Publications/Report/3907

The 2020-21 Spending Plan: Tax Changes

Oct 5, 2020 - Overall, the budget package assumes these changes will result in a net revenue increase of about $4  billion in 2020 ‑21. Starting in 2023 ‑24, the net effect of these changes are expected to reduce revenues below what they otherwise would have been.
https://lao.ca.gov/Publications/Report/4270

The 2018-19 May Revision: LAO Revenue Outlook

May 12, 2018 - Preliminary Franchise Tax Board data show that net capital gains in 2016 totaled $110 billion. We estimate that net capital gains increase to $150 billion in 2017 and $162 billion in 2018, driven primarily by recent increases in stock market values.
https://lao.ca.gov/Publications/Report/3830

The 2020-21 May Revision: Revenue Proposals in the 2020-21 May Revision

May 20, 2020 - Governor ’s Revenue Proposals Suspend Net Operating Loss (NOL) Deductions. Under the Governor ’s proposal, corporations that have net income over $1  million (which the administration terms “medium and large ” corporations) would not be allowed to use NOLs to reduce their taxes for 2020, 2021, and 2022.
https://lao.ca.gov/Publications/Report/4238