The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Empirical Evidence Points to Effectiveness of Tax Credit for Job Creation. Recent evidence from academic research has found that the California Competes tax credit is relatively effective at increasing employment and providing an economic benefit to the state, especially relative to other tax expenditure programs in California and elsewhere.
https://lao.ca.gov/Publications/Report/5162

The 2026-27 Budget: Permanent Business Credit Limitation [EconTax Blog]

May 18, 2026 - Tax data indicates that a limited number of corporations can offset a large share of their corporate tax liability through accumulated credits. This concentration partly reflects the structure of the research credit itself, which rewards qualified research expenditures above a calculated baseline amount and allows unused credits to be carried forward indefinitely.  
https://lao.ca.gov/LAOEconTax/Article/Detail/860

The 2026-27 Budget: Permanent Business Credit Limitation [EconTax Blog]

May 18, 2026 - Tax data indicates that a limited number of corporations can offset a large share of their corporate tax liability through accumulated credits. This concentration partly reflects the structure of the research credit itself, which rewards qualified research expenditures above a calculated baseline amount and allows unused credits to be carried forward indefinitely.  
https://lao.ca.gov/LAOEconTax/article/Detail/860

Comparing Options to Raise and Lower Taxes [Publication Details]

Mar 24, 2026 - Comparing Options to Raise and Lower Taxes [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/5170

Annual Report on Tax Exemptions for Medicinal Cannabis [Publication Details]

Jun 11, 2026 - Annual Report on Tax Exemptions for Medicinal Cannabis [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/5189

Annual Report on Tax Exemptions for Medicinal Cannabis

Jun 11, 2026 - Annual Report on Tax Exemptions for Medicinal Cannabis June 11, 2026 Annual Report on Tax Exemptions for Medicinal Cannabis Statutory Data Reporting Requirement. Chapter  920 of 2024 (AB  2555, Quirk-Silva) renewed an existing tax exemption for certain donations of medical cannabis products.
https://lao.ca.gov/Publications/Report/5189

The 2026-27 Budget: Sales Tax on Prewritten Software [EconTax Blog]

May 16, 2026 - In March, our office published a report evaluating various options for raising and lowering taxes. Three of the options we evaluated would align the sales tax base more closely with consumption: Expanding sales tax exemptions for business equipment; Extending the sales tax to consumer services; Extending the sales tax to digital goods.
https://lao.ca.gov/LAOEconTax/Article/Detail/859

The 2026-27 Budget: Sales Tax on Prewritten Software [EconTax Blog]

May 16, 2026 - In March, our office published a report evaluating various options for raising and lowering taxes. Three of the options we evaluated would align the sales tax base more closely with consumption: Expanding sales tax exemptions for business equipment; Extending the sales tax to consumer services; Extending the sales tax to digital goods.
https://lao.ca.gov/LAOEconTax/article/Detail/859

New IRS Data Show Pandemic Outmigration Eased in 2023 [EconTax Blog]

Apr 17, 2026 - Forgone tax collections due to net outmigration peaked at 1.6 percent of 2022-23 PIT revenue, three times higher (about 1 percentage point) than pre-pandemic levels. Our assessment of the 2023 IRS migration data suggests that net domestic outmigration reduced income tax revenue growth in 2023-24 by nearly $1 billion (0.7 percent).  
https://lao.ca.gov/LAOEconTax/Article/Detail/854

New IRS Data Show Pandemic Outmigration Eased in 2023 [EconTax Blog]

Apr 17, 2026 - Forgone tax collections due to net outmigration peaked at 1.6 percent of 2022-23 PIT revenue, three times higher (about 1 percentage point) than pre-pandemic levels. Our assessment of the 2023 IRS migration data suggests that net domestic outmigration reduced income tax revenue growth in 2023-24 by nearly $1 billion (0.7 percent).  
https://lao.ca.gov/LAOEconTax/article/Detail/854