Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that amends certain state tax policies in California.

Highlights:

• Amends California tax statutes for various policies (Sec. 1). 

• Establishes that the $5 million business credit limit proposed previously by Senate Bill 167 would not apply for taxable years in which the Director of Finance determines that General Fund money over the multiyear forecast is sufficient without the revenue impact of the net operating loss suspension and credit limitation (Sec. 1). 

• Specifies that a qualified taxpayer who elects to receive a specified refund under the motion picture credit, would allow the amount of the credit under the motion picture credit that exceeds the $5 million limitation proposed in Senate Bill 167 to be refunded in the first taxable year (Sec. 1). 

• Specifies for taxable years beginning on or after January 1, 2024, and before January 1, 2027, would allow a taxpayer to make an irrevocable election to receive an annual refundable credit amount (Sec. 1). 

• Specifies that the $5 million tax credit cap proposed by Senate Bill 167 would not apply in the 2025 or 2026 calendar years if the Director of Finance determines that General Fund money over the multiyear forecast is sufficient without the revenue impact of the net operating loss suspension and credit limitation (Sec. 1).

Full Bill Text