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

Building Reserves to Prepare for a Recession

Mar 7, 2018 - By most measures, the recession of the early 1990s was more severe than the dot ‑com bust in the early 2000s. For example, unemployment in California reached 9. 7  p ercent in mid ‑ to late ‑1992, but peaked at 6. 9  p ercent after the dot ‑com bust.
https://lao.ca.gov/Publications/Report/3769

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

California’s First Film Tax Credit Program

Sep 29, 2016 - This suggests that a net increase in new motion picture production spending might increase the state ’s gross economic output by twice that amount —the net new direct spending plus a roughly equal amount of additional indirect and induced economic activity.
https://lao.ca.gov/Publications/Report/3502