Understanding California Corporate Taxation: Apportionment [EconTax Blog]

Aug 11, 2026 - Apportionment Choices Are Tax-Base Design, Not Tax Expenditures. Single Sales Factor can increase taxes for some firms and reduce taxes for others, but it is not best understood as a tax expenditure in the same sense as a credit, deduction, or exemption.
https://lao.ca.gov/LAOEconTax/Article/Detail/866

Understanding California Corporate Taxation: Net Operating Loss Deductions [EconTax Blog]

Aug 11, 2026 - The fact that some businesses benefit from NOL treatment does not by itself make that treatment a tax expenditure. At the same time, treating NOL rules as part of the baseline tax structure does not mean every feature of those rules is beyond reconsideration.
https://lao.ca.gov/LAOEconTax/Article/Detail/865

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