The 2018-19 Budget: California Earned Income Tax Credit Education and Outreach

May 8, 2018 - In this post, we explain the federal and state tax credits, describe how grantees used state funds, and comment on how the Legislature might prioritize any future state-funded outreach activities. Background The Federal EITC A Fully Refundable Credit Based on Earned Income.
https://lao.ca.gov/Publications/Report/3826

The 2020-21 Spending Plan: Tax Changes

Oct 5, 2020 - Businesses may earn credits if they take actions the state wants to encourage, such as spending money on research and development. Tax credits reduce a business ’s tax bill directly, on a dollar-for-dollar basis.
https://lao.ca.gov/Publications/Report/4270

The 2019-20 Budget: California Spending Plan—Conformity

Oct 17, 2019 - The corporation can then deduct the NOL from its taxable income the following year, reducing that year ’s tax liability. Corporations can carryforward NOLs —apply them to a future year ’s earnings —for up to 20 years.
https://lao.ca.gov/Publications/Report/4100

The 2019-20 Budget: Analysis of Proposed Earned Income Tax Credit Expansion

Mar 6, 2019 - This can discourage people from moving from part ‑time to full ‑time work in some cases. In this section, we consider how well the Governor ’s proposal encourages people to join the workforce while reducing the disincentive to work full time.
https://lao.ca.gov/Publications/Report/3960

Fixing Unemployment Insurance

Dec 2, 2024 - Employers pay UI taxes on the first $7,000 of each worker ’s earnings, but the vast majority of workers earn more than $7,000  in each job annually. As a result, employers pay the same amount in UI taxes on behalf of basically every employee in the state, regardless of how much that employee earns.
https://lao.ca.gov/Publications/Report/4943

The 2018-19 Budget: The May Revision—State Earned Income Tax Credit Expansion

May 14, 2018 - The 2018-19 Budget: The May Revision—State Earned Income Tax Credit Expansion State Earned Income Tax Credit Expansion Background State Earned Income Tax Credit (EITC) Boosts Low-Income Households ’ Earnings.
https://lao.ca.gov/Publications/Report/3835

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

Feb 23, 2026 - Money returned to the General Fund can be spent on a much wider array of programs than those supported by the Cannabis Tax Fund. Consequently, shifting enforcement costs from the Cannabis Tax Fund to the General Fund is inefficient.
https://lao.ca.gov/Publications/Report/5132

Income Mobility in California Across Generations

Jan 4, 2017 - How Place Can Influence Mobility. Many geographic factors can affect mobility. Some of these factors are relatively recognizable. For example, the quality of children’s education, the strength of social networks around them, and the extent to which they are exposed to violent crime all could affect their future earnings.
https://lao.ca.gov/Publications/Report/3518

California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - These measurement errors can reduce the accuracy of the resulting estimates. Basic Setup for CPS Analyses Strategy for Unit Nonresponse: Official Survey Weights. To address unit nonresponse, we use the earnings weights calculated by the Census Bureau.
https://lao.ca.gov/Publications/Report/4878/4

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

Mar 18, 2025 - Some Subsidized Employment Programs Can Be Effective for Some Populations … While there are a variety of program models for subsidized employment, some have stronger evidence of success than others. Overall, most programs increase employment and earnings among participants while receiving a subsidy.
https://lao.ca.gov/Publications/Report/5018