The 2022-23 Budget: Federal Tax Conformity for Federal Business Assistance [Publication Details]

Jan 26, 2022 - This 2022-23 budget post provides background on federal COVID-19 business assistance programs and describes the Governor’s proposal to modify state tax laws as they relate to some of these grant programs. This post also provides some comments to the Legislature on the Governor’s proposal.
https://lao.ca.gov/Publications/Detail/4501

The 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - Accordingly, we suggest that the Legislature generally avoid enacting or expanding such locally funded state policies. Proposals That Reduce State Revenues. Most commonly, state tax incentives reduce state revenues.
https://lao.ca.gov/Publications/Report/4327

An Update on California’s Cash Management Situation

Aug 31, 2020 - State Controller Uses a Variety of Techniques to Manage Cash Position. The General Fund ’s daily cash situation is monitored and managed by the State Controller ’s Office (SCO). (The daily cash situations of other state funds, like special funds, are primarily managed by state departments.)
https://lao.ca.gov/Publications/Report/4266

Tax Credit Expansions in the American Rescue Plan

Apr 13, 2021 - State EITC Unaffected by Federal Changes. These changes are not expected to affect California ’s own EITC, as its relevant provisions are specified in state statute and are not linked to the federal provisions that changed under the ARP.
https://lao.ca.gov/Publications/Report/4410

Annual Report on Tax Exemptions for Medicinal Cannabis

Jul 1, 2021 - The data come from the state ’s Metrc “track and trace” system for licensed cannabis. In particular, the data reflect transactions that businesses identified as medicinal donations in calendar year 2020.
https://lao.ca.gov/Publications/Report/4447

Evaluating State Economic Stimulus Proposals [Publication Details]

Feb 1, 2021 - Evaluating State Economic Stimulus Proposals [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/4331

The 2020-21 Budget: Taxation of E-Cigarettes

Feb 24, 2020 - Potential state and federal policy changes —such as a state flavor ban or further FDA restrictions on e ‑ cigarettes —could have large effects on e ‑cigarette sales in California. Consumer Response to Tax.
https://lao.ca.gov/Publications/Report/4171

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

Mar 23, 2020 - Conclusion Two decades ago, the Legislature adopted an exemption from the state ’s minimum franchise tax for corporations in their first year of business with the stated intent to provide financial assistance to small businesses.
https://lao.ca.gov/Publications/Report/4207

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

Assessing Recent Changes to California Competes

Mar 30, 2020 - Prior to 2018, GO ‑Biz awarded about 35  p ercent of the total number of tax credit agreements —about 15  p ercent of the dollar value —to businesses in the non ‑tradable sector of the state ’s economy.
https://lao.ca.gov/Publications/Report/4213