Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that extends the California Competes business tax credit program through 2034.

Highlights:

• Establishes the Senior Citizens and Disabled Citizens Property Tax Postponement Fund in the State Treasury (Sec. 1).

• Establishes a credit against a net tax for each taxable year beginning on January 1, 2014 to January 1, 2035 (Sec. 2).

• Requires the Governor’s Office of Business and Economic Development to do the following (Sec. 2):

• Give priority to a taxpayer whose project or business is located or proposed to be located in an area of high unemployment or poverty;

• Negotiate with a taxpayer the terms and conditions of proposed written agreements that provide the credit allowed pursuant to this section to a taxpayer;

• Inform the Franchise Tax Board of the terms and conditions of the written agreement upon approval of the written agreement by the California Competes Tax Credit Committee; and

• Inform the Franchise Tax Board of any recapture of a previously allocated credit upon approval of the recapture by the California Competes Tax Credit Committee.

• Authorizes the Franchise Tax Board and the Governor’s Office of Business and Economic Development (GO-Biz) to exchange information for the administration of the California Competes Tax Credit (Sec. 2).

• Authorizes excess credit to be carried over to reduce the tax in the following taxable year and succeeding five taxable years (Sec. 8).

• Specifies that this act shall take effect immediately (Sec. 11).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that extends the California Competes business tax credit program through 2034.

Highlights:

• Establishes the Senior Citizens and Disabled Citizens Property Tax Postponement Fund in the State Treasury (Sec. 1).

• Establishes a credit against a net tax for each taxable year beginning on January 1, 2014 to January 1, 2035 (Sec. 2).

• Requires the Governor’s Office of Business and Economic Development to do the following (Sec. 2):

• Give priority to a taxpayer whose project or business is located or proposed to be located in an area of high unemployment or poverty;

• Negotiate with a taxpayer the terms and conditions of proposed written agreements that provide the credit allowed pursuant to this section to a taxpayer;

• Inform the Franchise Tax Board of the terms and conditions of the written agreement upon approval of the written agreement by the California Competes Tax Credit Committee; and

• Inform the Franchise Tax Board of any recapture of a previously allocated credit upon approval of the recapture by the California Competes Tax Credit Committee.

• Authorizes the Franchise Tax Board and the Governor’s Office of Business and Economic Development (GO-Biz) to exchange information for the administration of the California Competes Tax Credit (Sec. 2).

• Authorizes excess credit to be carried over to reduce the tax in the following taxable year and succeeding five taxable years (Sec. 8).

• Specifies that this act shall take effect immediately (Sec. 11).

Full Bill Text