LAO Economy and Taxes

Our proposed options include eliminating or modifying 12 tax expenditure programs for a savings of $1.7 billion over the next two years. In general, these recommendations are based on our conclusion that these programs lack a strong rationale or are not sufficiently effective or efficient in achieving their stated goals.
https://lao.ca.gov/Policy-Areas?areaId=8&category=0&year=0&page=12

California Tax Expenditures Programs: Sales and Use Taxes Part 3

California Tax Expenditures Programs: Sales and Use Taxes Part 3 Minor Description This program exempts from taxation 60  percent of the sales price of qualified factory-built housing. "Factory-built" housing includes such types as modular housing and sectionalized housing.
https://lao.ca.gov/1999/tax_expenditure_299/tep_299_salestax3.html

The 2025-26 Budget: Governor’s Office of Business and Economic Development

Mar 18, 2025 - Recent evidence from academic research has found that the California Competes tax credit is fairly 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/5018

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - This evaluation applies to both traditional spending programs and tax expenditures. Why Is It Particularly Important Now? State Faces Notable Deficits After 2025-26, Meaning Difficult Choices Are Ahead.
https://lao.ca.gov/Publications/Report/4983

^[PDF] 2009-10 Budget Analysis Series: Revenues

The three SUT tax expenditures—exemptions for food, most utilities, and prescription medicines— are by far the largest SUT tax expenditures, reducing General Fund revenues by about $9 bil‑ lion in 2007.
https://lao.ca.gov/2009/tax/revenues_0209/revenues_020609.pdf

^[PDF] McCauley-Rooker Tax Equity and Fiscal Responsibility Act

It also eliminates the current Alternative Minimum Tax for both the PIT and the CT. Curtails Certain Tax Expenditures. The measure eliminates or restricts certain so- called tax expenditure programs (TEPs).
https://lao.ca.gov/ballot/2006/060370.pdf

2006 Initiative Analysis: McCauley-Rooker Tax Equity and Fiscal Responsibility Act

It also eliminates the current Alternative Minimum Tax for both the PIT and the CT. Curtails Certain Tax Expenditures. The measure eliminates or restricts certain so-called tax expenditure programs (TEPs).
https://lao.ca.gov/ballot/2006/060370.htm

Tax Expenditure Programs: Property Taxes Part 3

Tax Expenditure Programs: Property Taxes Part 3 12 Description This program exempts from the property tax a portion of the assessed value of the principal residence owned by a disabled veteran, or by the disabled veterans' unmarried surviving spouse.
https://lao.ca.gov/1999/tax_expenditure_299/tep_299_proptax3.html

California Tax Expenditures Programs: Sales and Use Taxes Part 1

California Tax Expenditures Programs: Sales and Use Taxes Part 1 3,264 Description This program exempts from taxation the sale or transfer of gas, electricity, water (including steam), and geothermal brines or other heat sources delivered through mains, lines, or pipes.
https://lao.ca.gov/1999/tax_expenditure_299/tep_299_salestax1.html

2005 Initiative Analysis: The McCauley-Rooker Tax Equity and Fiscal Responsibility Act

It also eliminates the current Alternative Minimum Tax for both the PIT and the CT. Curtails Certain Tax Expenditures. The measure eliminates or restricts certain so-called tax expenditure programs (TEPs).
https://lao.ca.gov/ballot/2005/050762.htm