The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal

Feb 24, 2026 - Recommendation Reject Proposed Tax Credit. We recommend the Legislature reject the proposed budget trailer legislation establishing a credit against diesel excise tax revenue for sale of SAF in California.
https://lao.ca.gov/Publications/Report/5139

The 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - Moves Financial Institutions to Single Sales Factor Apportionment. Multistate and multinational corporations have their California tax liability calculated using a process known as apportionment. Most firms use the Single Sales Factor method, which calculates the percentage of a firm ’s sales that occur in California, and then subjects that percentage of the firm ’s profits to California taxation.
https://lao.ca.gov/Publications/Report/5081

The 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - Moves Financial Institutions to Single Sales Factor Apportionment. Multistate and multinational corporations have their California tax liability calculated using a process known as apportionment. Most firms use the Single Sales Factor method, which calculates the percentage of a firm ’s sales that occur in California, and then subjects that percentage of the firm ’s profits to California taxation.
https://lao.ca.gov/Publications/Report/5081/

The 2026-27 Budget: Proposed Zero-Emission Vehicle Incentive

Feb 24, 2026 - Most recently, the federal Inflation Reduction Act included a tax credit of up to $7,500 per vehicle for the purchase of new light ‑duty ZEVs and up to $4,000 per vehicle for the purchase of used light ‑duty ZEVs.
https://lao.ca.gov/Publications/Report/5140

The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal [Publication Details]

Feb 24, 2026 - The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal [Publication Details] Description: In this brief, we analyze the Governor's proposal to create a new credit against diesel excise tax liability to incentivize the use of sustainable aviation fuel in California.
https://lao.ca.gov/Publications/Detail/5139

The 2022-23 Budget: Fuel Price and Other Fiscal Relief Options

May 12, 2022 - Lower Diesel Sales Tax Rates. The Governor proposes a one ‑year reduction in the diesel sales tax from 13  percent to roughly 9  percent. The administration estimates that the resulting revenue loss to the state in the budget  year would be  up to $600   million.
https://lao.ca.gov/Publications/Report/4597

Cap-and-Invest: November 2025 Auction Update and 2026-27 Budget Context

Dec 9, 2025 - (In both auctions, all the state-owned allowances offered for sale were purchased.) …Continuing to Come in Slightly Below 2025-26 Budget Act Assumptions. At the time the Legislature enacted the 2025-26 Budget Act , the Department of Finance (DOF) projected annual GGRF revenues of $3.5  billion for 2025-26, or roughly $870  million per quarter.
https://lao.ca.gov/Publications/Report/5096

The 2025-26 Budget: State Mandate—Santa Ana Regional Water Quality Control Board

May 5, 2025 - In 2010, Orange County, Orange County Flood Control District, and 14 cities within Orange County filed a test claim with CSM contending that various sections of the 2009 permit represented state-reimbursable mandated activities.
https://lao.ca.gov/Publications/Report/5039

The 2026-27 Budget: Proposed Zero-Emission Vehicle Incentive [Publication Details]

Feb 24, 2026 - In this piece, we review the Governor's proposal to provide $200 million to create a new point-of-sale incentive program for light-duty zero-emission vehicles.
https://lao.ca.gov/Publications/Detail/5140

Overview of New Updates to the Cap-and-Invest Program

Dec 9, 2025 - For  example, if allowance prices reach the ceiling, redirecting the proceeds from the sale of those allowances from the purchase of offsets to other purposes that could reduce consumer costs (such as rebates) would help mitigate the costs of the program on consumers.
https://lao.ca.gov/Publications/Report/5097