California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - These concerns have grown as response rates for many surveys have declined substantially over the last decade. For example, the monthly CPS unit nonresponse rate grew from 10  percent in 2013 to 30  percent in 2023.
https://lao.ca.gov/Publications/Report/4878/4

Overview of Diversity Efforts in the Film Tax Credit Program

May 1, 2025 - The definition of DEIA adopted by the CFC and in the California Code of Regulations includes a commitment to provide equitable access to opportunities on the basis of a wide range of protected classes.
https://lao.ca.gov/Publications/Report/5036

The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - Specifically, we examined whether New Market Tax Credits had a measurable effect on the incomes of residents of zip codes that received New Market Tax Credit investments between 2003 and 2014. To do so, we first matched each zip code that received investment with another zip code in California that (1)  was eligible but did not receive New Market Tax Credit investments and (2)  had residents with similar incomes.
https://lao.ca.gov/Publications/Report/4038

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - However, since the lag between the credit agreement and the outcomes of interest can be up to several years, we do not yet have the economic data to evaluate the most recent rounds of awards. Credit Recapture and Recycling Credits Can Be Reclaimed if Milestones Not Met or Maintained.
https://lao.ca.gov/Publications/Report/5162

Common Claims About Proposition 13

Sep 19, 2016 - In contrast, housing developments, which do not produce sales or hotel tax revenues directly, often lead to more local costs than offsetting tax revenues. Fiscal Incentives Do Not Appear to Have Major Influence on Land Use Decisions.
https://lao.ca.gov/Publications/Report/3497

The 2020-21 Budget: Expanding the Minimum Franchise Tax Exemption

Mar 23, 2020 - Taxpayers who do not file a timely tax return may be subject to pe nalties and interest. Such treatment of new businesses seems to be at odds with the intent of assisting small businesses that are less likely to have access to experienced state tax advisors.
https://lao.ca.gov/Publications/Report/4207

The 2023-24 Budget: California's Film Tax Credit

Feb 28, 2023 - Several other states have film tax credit programs that are more generous (and expensive) than California ’s. Whereas California caps film tax credit allocations at $330  million per year, some states —such as Georgia, Massachusetts, and Connecticut —do not have an annual cap on the amount of tax credits available to production companies.
https://lao.ca.gov/Publications/Report/4713

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - We do not think that all —or even more —programs should have automatic adjustments or more statutory authority for administrative discretion. Doing so would reduce the Legislature ’s discretion over state spending.
https://lao.ca.gov/Publications/Report/4647

Volatility of California’s Personal Income Tax Structure

Sep 28, 2017 - How Do Graduated Rates Promote Volatility? As Figure  3 earlier showed, much of the first $150,000 of a filer ’s income is taxed at rates below 9.3  percent. In fact, in 2014 over 80  percent of filers below $150,000 would have had no income taxed at the 9.3  percent rate even if the state ’s tax code had no deductions or credits.
https://lao.ca.gov/Publications/Report/3703

The 2025-26 Budget: California’s Film Tax Credit

Feb 28, 2025 - Labor and resources used on tax credit productions may have been used on other productions or in other industries and, therefore, do not necessarily represent new economic activity. State Incentives Typically Do Not Pay for Themselves.
https://lao.ca.gov/Publications/Report/5000