Tax Credit Expansions in the American Rescue Plan

Apr 13, 2021 - We also discuss changes to the dependent care exclusion which is linked to the child care credit. These changes are for tax year 2021 only except where otherwise noted. (We refer to the prior provisions of these tax credits as “prior law. ” Because the new provisions are scheduled to only be in effect in 2021 in most cases, we anticipate the provisions to revert to prior law starting in 2022.)
https://lao.ca.gov/Publications/Report/4410

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

Feb 28, 2023 - States With Film Tax Credits Likely Have More Motion Picture Production. While some studies reach mixed or inconclusive findings, the balance of the evidence suggests that motion picture production increases in states with film tax credits.
https://lao.ca.gov/Publications/Report/4713

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

Feb 23, 2026 - In the case of the Cannabis Tax Program, we note: The administration has not presented any arguments linking the General Fund ’s share of costs to its share of indirect benefits. This is not part of a broad, systematic effort to allocate costs based on indirect benefits.
https://lao.ca.gov/Publications/Report/5132

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Namely, those tax credits could have been awarded to another applicant who would have been more likely to achieve their milestones. However, as we discuss next, this has not been the case in the last few years of the program.
https://lao.ca.gov/Publications/Report/5162

Fixing Unemployment Insurance

Dec 2, 2024 - The outstanding loan is very likely to grow by billions of dollars over the next several years before the federal surcharge contributions are large enough to begin making progress toward repayment. During this period, state General Fund interest costs will likely be about $1  billion per year.
https://lao.ca.gov/Publications/Report/4943

Updating the California Necessities Index

Aug 14, 2025 - Therefore, the BLS will likely continue publishing the statistics required to calculate these s tatistics, making this option likely more robust to future publication decisions. Recommendation Rank of Options.
https://lao.ca.gov/Publications/Report/5065

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

Feb 28, 2025 - Effects of Los Angeles Wildfires on Industry Are Unknown, but Likely Small. The recent Los Angeles wildfires caused significant property damage, primarily in the Pacific Palisades and Altadena neighborhoods.
https://lao.ca.gov/Publications/Report/5000

California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - These workers likely would be affected directly by proposals to increase the statewide minimum wage. Limitations of Survey-Based Estimates. Like many economic measurements, our estimates come from survey data.
https://lao.ca.gov/Publications/Report/4878/1

Annual Report on Tax Exemptions for Medicinal Cannabis

Jun 24, 2025 - Some patients likely received more than one donation in 2024, so this total likely overstates the number of distinct patients. For example, if a patient received six donations in 2024, then the transaction total includes that person six times.
https://lao.ca.gov/Publications/Report/5059

Local Sales Tax Rebates in 2023-24

Sep 16, 2025 - The veto message described these agreements as “an important local tool that captures additional economic activity, particularly in rural and inland California cities that continue to face significant economic challenges like high unemployment rates. ” 2024 Law Requires Disclosure of Local Sales Tax Rebates.
https://lao.ca.gov/Publications/Report/5074