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: Analysis of Proposed Earned Income Tax Credit Expansion

Mar 6, 2019 - The 2019-20 Budget: Analysis of Proposed Earned Income Tax Credit Expansion 192 EITC = Earned Income Tax Credit. .  .  . Recent Changes to EITC Likely to Increase Use Further. The Legislature expanded the state EITC for tax year 2018 i n two ways.
https://lao.ca.gov/Publications/Report/3960

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

May 14, 2018 - Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656
https://lao.ca.gov/Publications/Report/3835

The 2018-19 Budget: California Hiring Tax Credits

Mar 15, 2018 - This can still be a significant amount —as we show in  1 . The existing credit can subsidize up to 20  p ercent of an employee ’s annual wage at $38. 50 p er hour. However, for lower ‑wage workers, the existing credit is much smaller.
https://lao.ca.gov/Publications/Report/3784

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

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

Tax Credit Expansions in the American Rescue Plan

Apr 13, 2021 - Figure  1 below shows how childless filers ’ EITC amounts will change under the new law. As the filer ’s earnings increase, the EITC amount first grows over a phase-in range, then flattens, then gradually declines over a phase-out range until the credit reaches zero.
https://lao.ca.gov/Publications/Report/4410

Evaluating State Economic Stimulus Proposals

Feb 1, 2021 - The state is prohibited from borrowing money to finance state operations. In most cases, voters must approve new bond authority before the state can raise the funds —a process that increases the amount of time between when the need for stimulus is identified and when any new spending may occur.
https://lao.ca.gov/Publications/Report/4331