SB 1120: Personal Income Tax Law: Corporation Tax Law: credits: CalCompetes.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws including, for taxable years beginning on and after January 1, 2014, and before January 1, 2030, a California Competes Tax Credit in an amount allocated by the Governors Office of Business and Economic Development (GO-Biz) through the 202728 fiscal year, and provided in a written agreement between GO-Biz and the taxpayer, approved by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer.

This bill would extend the California Competes Tax Credit through taxable years beginning before January 1, 2035, and would make conforming changes to the impacted fiscal year references in those provisions. The bill would, for taxable years beginning on or after January 1, 2026, and before January 1, 2035, also allow a taxpayer in a strategic industry, as defined, to make an election in the form and manner provided prescribed by GO-Biz for the California Competes Tax Credit to be refundable to the taxpayer from the Tax Relief and Refund Account, Account or the Corporation Tax Fund, as provided. By increasing the payments from the Tax Relief and Refund Account, a Account and the Corporation Tax Fund, continuously appropriated fund, funds, the bill would make an appropriation.