Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 961


Introduced by Assembly Member Gallagher

February 26, 2015


An actbegin delete relating to taxation.end deletebegin insert to amend Sections 17059.2 and 23689 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 961, as amended, Gallagher. Income taxation: credits: California competes.

Existing law allows a credit against the taxes imposed under the Corporation Tax Law and the Personal Income Tax Law for each taxable year beginning on or after January 1, 2014, and before January 1, 2025, in an amount as provided in a written agreement between the Governor’s Office of Business and Economic Development and the taxpayer, agreed upon 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.begin insert Existing law limits the aggregate amount of credits allocated to taxpayers to a specified sum per fiscal year. Existing law authorizes the Director of Finance to increase the aggregate amount of the economic development credits that may be allocated to taxpayers each fiscal year by $25 million per fiscal year through the 2017-18 fiscal year.end insert

This bill wouldbegin delete state the intent of the Legislature to enact legislation to improve the California Competes Tax Credit program to better serve areas with high unemployment.end deletebegin insert provide for an additional aggregate amount of credit that may be allocated in any fiscal year pursuant to these provisions of $50,000,000 per fiscal year commencing with the 2015-16 fiscal year through the 2017-18 fiscal year, to be allocated to taxpayers that are otherwise eligible for this credit that are located in a county, city and county, or metropolitan statistical area that has a 10%, or higher, unemployment rate.end insert

begin insert

This bill would take effect immediately as a tax levy.

end insert

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 17059.2 of the end insertbegin insertRevenue and Taxation
2Code
end insert
begin insert is amended to read:end insert

3

17059.2.  

(a) (1) For each taxable year beginning on and after
4January 1, 2014, and before January 1, 2025, there shall be allowed
5as a credit against the “net tax,” as defined in Section 17039, an
6amount as determined by the committee pursuant to paragraph (2)
7and approved pursuant to Section 18410.2.

8(2) The credit under this section shall be allocated by GO-Biz
9with respect to the 2013-14 fiscal year through and including the
102017-18 fiscal year. The amount of credit allocated to a taxpayer
11with respect to a fiscal year pursuant to this section shall be as set
12forth in a written agreement between GO-Biz and the taxpayer and
13shall be based on the following factors:

14(A) The number of jobs the taxpayer will create or retain in this
15state.

16(B) The compensation paid or proposed to be paid by the
17taxpayer to its employees, including wages and fringe benefits.

18(C) The amount of investment in this state by the taxpayer.

19(D) The extent of unemployment or poverty in the area
20according to the United States Census in which the taxpayer’s
21project or business is proposed or located.

22(E) The incentives available to the taxpayer in this state,
23including incentives from the state, local government, and other
24entities.

25(F) The incentives available to the taxpayer in other states.

26(G) The duration of the proposed project and the duration the
27taxpayer commits to remain in this state.

P3    1(H) The overall economic impact in this state of the taxpayer’s
2project or business.

3(I) The strategic importance of the taxpayer’s project or business
4to the state, region, or locality.

5(J) The opportunity for future growth and expansion in this state
6by the taxpayer’s business.

7(K) The extent to which the anticipated benefit to the state
8exceeds the projected benefit to the taxpayer from the tax credit.

9(3) The written agreement entered into pursuant to paragraph
10(2) shall include:

11(A) Terms and conditions that include the taxable year or years
12for which the credit allocated shall be allowed, a minimum
13compensation level, and a minimum job retention period.

14(B) Provisions indicating whether the credit is to be allocated
15in full upon approval or in increments based on mutually agreed
16upon milestones when satisfactorily met by the taxpayer.

17(C) Provisions that allow the committee to recapture the credit,
18in whole or in part, if the taxpayer fails to fulfill the terms and
19conditions of the written agreement.

20(b) For purposes of this section:

21(1) “Committee” means the California Competes Tax Credit
22Committee established pursuant to Section 18410.2.

23(2) “GO-Biz” means the Governor’s Office of Business and
24Economic Development.

25(c) For purposes of this section, GO-Biz shall do the following:

26(1) Give priority to a taxpayer whose project or business is
27located or proposed to be located in an area of high unemployment
28or poverty.

29(2) Negotiate with a taxpayer the terms and conditions of
30proposed written agreements that provide the credit allowed
31pursuant to this section to a taxpayer.

32(3) Provide the negotiated written agreement to the committee
33for its approval pursuant to Section 18410.2.

34(4) Inform the Franchise Tax Board of the terms and conditions
35of the written agreement upon approval of the written agreement
36by the committee.

37(5) Inform the Franchise Tax Board of any recapture, in whole
38or in part, of a previously allocated credit upon approval of the
39recapture by the committee.

40(6) Post on its Internet Web site all of the following:

P4    1(A) The name of each taxpayer allocated a credit pursuant to
2this section.

3(B) The estimated amount of the investment by each taxpayer.

4(C) The estimated number of jobs created or retained.

5(D) The amount of the credit allocated to the taxpayer.

6(E) The amount of the credit recaptured from the taxpayer, if
7applicable.

8(d) For purposes of this section, the Franchise Tax Board shall
9do all of the following:

10(1) (A) Except as provided in subparagraph (B), review the
11books and records of all taxpayers allocated a credit pursuant to
12this section to ensure compliance with the terms and conditions
13of the written agreement between the taxpayer and GO-Biz.

14(B) In the case of a taxpayer that is a “small business,” as
15defined in Section 17053.73, review the books and records of the
16taxpayer allocated a credit pursuant to this section to ensure
17compliance with the terms and conditions of the written agreement
18between the taxpayer and GO-Biz when, in the sole discretion of
19the Franchise Tax Board, a review of those books and records is
20appropriate or necessary in the best interests of the state.

21(2) Notwithstanding Section 19542:

22(A) Notify GO-Biz of a possible breach of the written agreement
23by a taxpayer and provide detailed information regarding the basis
24for that determination.

25(B) Provide information to GO-Biz with respect to whether a
26taxpayer is a “small business,” as defined in Section 17053.73.

27(e) In the case where the credit allowed under this section
28exceeds the “net tax,” as defined in Section 17039, for a taxable
29year, the excess credit may be carried over to reduce the “net tax”
30in the following taxable year, and succeeding five taxable years,
31if necessary, until the credit has been exhausted.

32(f) Any recapture, in whole or in part, of a credit approved by
33the committee pursuant to Section 18410.2 shall be treated as a
34mathematical error appearing on the return. Any amount of tax
35resulting from that recapture shall be assessed by the Franchise
36Tax Board in the same manner as provided by Section 19051. The
37amount of tax resulting from the recapture shall be added to the
38tax otherwise due by the taxpayer for the taxable year in which
39the committee’s recapture determination occurred.

P5    1(g) (1) The aggregate amount of credit that may be allocated
2in any fiscal year pursuant to this section and Section 23689 shall
3be an amount equal to the sum of subparagraphs (A), (B), and (C),
4less the amount specified in subparagraphs (D) and (E):

5(A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal
6year, one hundred fifty million dollars ($150,000,000) for the
72014-15 fiscal year, and two hundred million dollars
8($200,000,000) for each fiscal year from 2015-16 to 2017-18,
9inclusive.

10(B) The unallocated credit amount, if any, from the preceding
11fiscal year.

12(C) The amount of any previously allocated credits that have
13been recaptured.

14(D) The amount estimated by the Director of Finance, in
15consultation with the Franchise Tax Board and the State Board of
16Equalization, to be necessary to limit the aggregation of the
17estimated amount of exemptions claimed pursuant to Section
186377.1 and of the amounts estimated to be claimed pursuant to
19this section and Sections 17053.73, 23626, and 23689 to no more
20than seven hundred fifty million dollars ($750,000,000) for either
21the current fiscal year or the next fiscal year.

22(i) The Director of Finance shall notify the Chairperson of the
23Joint Legislative Budget Committee of the estimated annual
24 allocation authorized by this paragraph. Any allocation pursuant
25to these provisions shall be made no sooner than 30 days after
26written notification has been provided to the Chairperson of the
27Joint Legislative Budget Committee and the chairpersons of the
28committees of each house of the Legislature that consider
29appropriation, or not sooner than whatever lesser time the
30Chairperson of the Joint Legislative Budget Committee, or his or
31her designee, may determine.

32(ii) In no event shall the amount estimated in this subparagraph
33be less than zero dollars ($0).

34(E) (i) For the 2015-16 fiscal year and each fiscal year
35thereafter, the amount of credit estimated by the Director of Finance
36to be allowed to all qualified taxpayers for that fiscal year pursuant
37to subparagraph (A) or subparagraph (B) of paragraph (1) of
38subdivision (c) of Section 23636.

39(ii) If the amount available per fiscal year pursuant to this section
40and Section 23689 is less than the aggregate amount of credit
P6    1estimated by the Director of Finance to be allowed to qualified
2taxpayers pursuant to subparagraph (A) or subparagraph (B) of
3paragraph (1) of subdivision (c) of Section 23636, the aggregate
4amount allowed pursuant to Section 23636 shall not be reduced
5and, in addition to the reduction required by clause (i), the
6aggregate amount of credit that may be allocated pursuant to this
7section and Section 23689 for the next fiscal year shall be reduced
8by the amount of that deficit.

9(iii) It is the intent of the Legislature that the reductions specified
10in this subparagraph of the aggregate amount of credit that may
11be allocated pursuant to this section and Section 23689 shall
12continue if the repeal dates of the credits allowed by this section
13and Section 23689 are removed or extended.

14(2) (A) In addition to the other amounts determined pursuant
15to paragraph (1), the Director of Finance may increase the
16aggregate amount of credit that may be allocated pursuant to this
17section and Section 23689 by up to twenty-five million dollars
18($25,000,000) per fiscal year through the 2017-18 fiscal year. The
19amount of any increase made pursuant to this paragraph, when
20combined with any increase made pursuant to paragraph (2) of
21subdivision (g) of Section 23689, shall not exceed twenty-five
22million dollars ($25,000,000) per fiscal year through the 2017-18
23fiscal year.

24(B) It is the intent of the Legislature that the Director of Finance
25increase the aggregate amount under subparagraph (A) in order to
26mitigate the reduction of the amount available due to the credit
27allowed to all qualified taxpayers pursuant to subparagraph (A) or
28 (B) of paragraph (1) of subdivision (c) of Section 23636.

begin insert

29(3) (A) In addition to the other amounts determined pursuant
30to paragraphs (1) and (2), an additional amount of credit in an
31amount equal to the sum of clauses (i), (ii), and (iii) may be
32allocated to taxpayers, otherwise eligible pursuant to this section
33and subject to the requirements of this section, that are located in
34a county, city and county, or metropolitan statistical area that has
35a 10 percent, or higher, rate of unemployment.

end insert
begin insert

36(i) Fifty million dollars ($50,000,000) for the 2015-16 fiscal
37year, and each fiscal year thereafter, to the 2017-18 fiscal year,
38inclusive.

end insert
begin insert

39(ii) The unallocated credit amount, if any, from the preceding
40fiscal year.

end insert
begin insert

P7    1(iii) The amount of any previously allocated credits that have
2been recaptured.

end insert
begin insert

3(B) Paragraphs (4) and (5) shall not apply to the aggregate
4amount of credit allocated pursuant to this paragraph.

end insert
begin delete

5(3)

end delete

6begin insert(4)end insert Each fiscal year, 25 percent of the aggregate amount of the
7credit that may be allocated pursuant to this section and Section
823689 shall be reserved forbegin delete small business,end deletebegin insert “small business,”end insert as
9defined in Section 17053.73 or 23626.

begin delete

10(4)

end delete

11begin insert(5)end insert Each fiscal year, no more than 20 percent of the aggregate
12amount of the credit that may be allocated pursuant to this section
13shall be allocated to any one taxpayer.

14(h) GO-Biz may prescribe rules and regulations as necessary to
15carry out the purposes of this section. Any rule or regulation
16prescribed pursuant to this section may be by adoption of an
17emergency regulation in accordance with Chapter 3.5 (commencing
18with Section 11340) of Part 1 of Division 3 of Title 2 of the
19Government Code.

20(i) A written agreement between GO-Biz and a taxpayer with
21respect to the credit authorized by this section shall comply with
22existing law on the date the agreement is executed.

23(j) (1) Upon the effective date of this section, the Department
24of Finance shall estimate the total dollar amount of credits that
25will be claimed under this section with respect to each fiscal year
26from the 2013-14 fiscal year to the 2024-25 fiscal year, inclusive.

27(2) The Franchise Tax Board shall annually provide to the Joint
28Legislative Budget Committee, by no later than March 1, a report
29of the total dollar amount of the credits claimed under this section
30with respect to the relevant fiscal year. The report shall compare
31the total dollar amount of credits claimed under this section with
32respect to that fiscal year with the department’s estimate with
33respect to that same fiscal year. If the total dollar amount of credits
34claimed for the fiscal year is less than the estimate for that fiscal
35year, the report shall identify options for increasing annual claims
36of the credit so as to meet estimated amounts.

37(k) This section is repealed on December 1, 2025.

38begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 23689 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
39amended to read:end insert

P8    1

23689.  

(a) (1) For each taxable year beginning on and after
2January 1, 2014, and before January 1, 2025, there shall be allowed
3as a credit against the “tax,” as defined in Section 23036, an amount
4as determined by the committee pursuant to paragraph (2) and
5approved pursuant to Section 18410.2.

6(2) The credit under this section shall be allocated by GO-Biz
7with respect to the 2013-14 fiscal year through and including the
82017-18 fiscal year. The amount of credit allocated to a taxpayer
9with respect to a fiscal year pursuant to this section shall be as set
10forth in a written agreement between GO-Biz and the taxpayer and
11shall be based on the following factors:

12(A) The number of jobs the taxpayer will create or retain in this
13state.

14(B) The compensation paid or proposed to be paid by the
15taxpayer to its employees, including wages and fringe benefits.

16(C) The amount of investment in this state by the taxpayer.

17(D) The extent of unemployment or poverty in the area
18according to the United States Census in which the taxpayer’s
19project or business is proposed or located.

20(E) The incentives available to the taxpayer in this state,
21including incentives from the state, local government, and other
22entities.

23(F) The incentives available to the taxpayer in other states.

24(G) The duration of the proposed project and the duration the
25taxpayer commits to remain in this state.

26(H) The overall economic impact in this state of the taxpayer’s
27project or business.

28(I) The strategic importance of the taxpayer’s project or business
29to the state, region, or locality.

30(J) The opportunity for future growth and expansion in this state
31by the taxpayer’s business.

32(K) The extent to which the anticipated benefit to the state
33exceeds the projected benefit to the taxpayer from the tax credit.

34(3) The written agreement entered into pursuant to paragraph
35(2) shall include:

36(A) Terms and conditions that include the taxable year or years
37for which the credit allocated shall be allowed, a minimum
38compensation level, and a minimum job retention period.

P9    1(B) Provisions indicating whether the credit is to be allocated
2in full upon approval or in increments based on mutually agreed
3upon milestones when satisfactorily met by the taxpayer.

4(C) Provisions that allow the committee to recapture the credit,
5in whole or in part, if the taxpayer fails to fulfill the terms and
6conditions of the written agreement.

7(b) For purposes of this section:

8(1) “Committee” means the California Competes Tax Credit
9Committee established pursuant to Section 18410.2.

10(2) “GO-Biz” means the Governor’s Office of Business and
11Economic Development.

12(c) For purposes of this section, GO-Biz shall do the following:

13(1) Give priority to a taxpayer whose project or business is
14located or proposed to be located in an area of high unemployment
15or poverty.

16(2) Negotiate with a taxpayer the terms and conditions of
17proposed written agreements that provide the credit allowed
18pursuant to this section to a taxpayer.

19(3) Provide the negotiated written agreement to the committee
20for its approval pursuant to Section 18410.2.

21(4) Inform the Franchise Tax Board of the terms and conditions
22of the written agreement upon approval of the written agreement
23by the committee.

24(5) Inform the Franchise Tax Board of any recapture, in whole
25or in part, of a previously allocated credit upon approval of the
26recapture by the committee.

27(6) Post on its Internet Web site all of the following:

28(A) The name of each taxpayer allocated a credit pursuant to
29this section.

30(B) The estimated amount of the investment by each taxpayer.

31(C) The estimated number of jobs created or retained.

32(D) The amount of the credit allocated to the taxpayer.

33(E) The amount of the credit recaptured from the taxpayer, if
34applicable.

35(d) For purposes of this section, the Franchise Tax Board shall
36do all of the following:

37(1) (A) Except as provided in subparagraph (B), review the
38books and records of all taxpayers allocated a credit pursuant to
39this section to ensure compliance with the terms and conditions
40of the written agreement between the taxpayer and GO-Biz.

P10   1(B) In the case of a taxpayer that is a “small business,” as
2defined in Section 23626, review the books and records of the
3taxpayer allocated a credit pursuant to this section to ensure
4compliance with the terms and conditions of the written agreement
5between the taxpayer and GO-Biz when, in the sole discretion of
6the Franchise Tax Board, a review of those books and records is
7appropriate or necessary in the best interests of the state.

8(2) Notwithstanding Section 19542:

9(A) Notify GO-Biz of a possible breach of the written agreement
10by a taxpayer and provide detailed information regarding the basis
11for that determination.

12(B) Provide information to GO-Biz with respect to whether a
13taxpayer is a “small business,” as defined in Section 23626.

14(e) In the case where the credit allowed under this section
15exceeds the “tax,” as defined in Section 23036, for a taxable year,
16the excess credit may be carried over to reduce the “tax” in the
17following taxable year, and succeeding five taxable years, if
18necessary, until the credit has been exhausted.

19(f) Any recapture, in whole or in part, of a credit approved by
20the committee pursuant to Section 18410.2 shall be treated as a
21mathematical error appearing on the return. Any amount of tax
22 resulting from that recapture shall be assessed by the Franchise
23Tax Board in the same manner as provided by Section 19051. The
24amount of tax resulting from the recapture shall be added to the
25tax otherwise due by the taxpayer for the taxable year in which
26the committee’s recapture determination occurred.

27(g) (1) The aggregate amount of credit that may be allocated
28in any fiscal year pursuant to this section and Section 17059.2 shall
29be an amount equal to the sum of subparagraphs (A), (B), and (C),
30less the amount specified in subparagraphs (D) and (E):

31(A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal
32year, one hundred fifty million dollars ($150,000,000) for the
332014-15 fiscal year, and two hundred million dollars
34($200,000,000) for each fiscal year from 2015-16 to 2017-18,
35inclusive.

36(B) The unallocated credit amount, if any, from the preceding
37fiscal year.

38(C) The amount of any previously allocated credits that have
39been recaptured.

P11   1(D) The amount estimated by the Director of Finance, in
2consultation with the Franchise Tax Board and the State Board of
3Equalization, to be necessary to limit the aggregation of the
4estimated amount of exemptions claimed pursuant to Section
56377.1 and of the amounts estimated to be claimed pursuant to
6this section and Sections 17053.73, 17059.2, and 23626 to no more
7than seven hundred fifty million dollars ($750,000,000) for either
8the current fiscal year or the next fiscal year.

9(i) The Director of Finance shall notify the Chairperson of the
10Joint Legislative Budget Committee of the estimated annual
11allocation authorized by this paragraph. Any allocation pursuant
12to these provisions shall be made no sooner than 30 days after
13written notification has been provided to the Chairperson of the
14Joint Legislative Budget Committee and the chairpersons of the
15committees of each house of the Legislature that consider
16appropriation, or not sooner than whatever lesser time the
17Chairperson of the Joint Legislative Budget Committee, or his or
18her designee, may determine.

19(ii) In no event shall the amount estimated in this subparagraph
20be less than zero dollars ($0).

21(E) (i) For the 2015-16 fiscal year and each fiscal year
22thereafter, the amount of credit estimated by the Director of Finance
23to be allowed to all qualified taxpayers for that fiscal year pursuant
24to subparagraph (A) or subparagraph (B) of paragraph (1) of
25subdivision (c) of Section 23636.

26(ii) If the amount available per fiscal year pursuant to this section
27and Section 17059.2 is less than the aggregate amount of credit
28estimated by the Director of Finance to be allowed to qualified
29taxpayers pursuant to subparagraph (A) or subparagraph (B) of
30paragraph (1) of subdivision (c) of Section 23636, the aggregate
31amount allowed pursuant to Section 23636 shall not be reduced
32and, in addition to the reduction required by clause (i), the
33aggregate amount of credit that may be allocated pursuant to this
34section and Section 17059.2 for the next fiscal year shall be reduced
35by the amount of that deficit.

36(iii) It is the intent of the Legislature that the reductions specified
37in this subparagraph of the aggregate amount of credit that may
38be allocated pursuant to this section and Section 17059.2 shall
39continue if the repeal dates of the credits allowed by this section
40and Section 17059.2 are removed or extended.

P12   1(2) (A) In addition to the other amounts determined pursuant
2to paragraph (1), the Director of Finance may increase the
3aggregate amount of credit that may be allocated pursuant to this
4section and Section 17059.2 by up to twenty-five million dollars
5($25,000,000) per fiscal year through the 2017-18 fiscal year. The
6amount of any increase made pursuant to this paragraph, when
7combined with any increase made pursuant to paragraph (2) of
8subdivision (g) of Section 17059.2, shall not exceed twenty-five
9million dollars ($25,000,000) per fiscal year through the 2017-18
10fiscal year.

11(B) It is the intent of the Legislature that the Director of Finance
12increase the aggregate amount under subparagraph (A) in order to
13mitigate the reduction of the amount available due to the credit
14allowed to all qualified taxpayers pursuant to subparagraph (A) or
15(B) of paragraph (1) of subdivision (c) of Section 23636.

begin insert

16(3) (A) In addition to the other amounts determined pursuant
17to paragraphs (1) and (2), an additional amount of credit in an
18amount equal to the sum of clauses (i), (ii), and (iii) may be
19allocated to taxpayers, otherwise eligible pursuant to this section
20and subject to the requirements of this section, that are located in
21a county, city and county, or metropolitan statistical area that has
22a 10 percent, or higher, rate of unemployment.

end insert
begin insert

23(i) Fifty million dollars ($50,000,000) for the 2015-16 fiscal
24year, and each fiscal year thereafter, to the 2017-18 fiscal year,
25inclusive.

end insert
begin insert

26(ii) The unallocated credit amount, if any, from the preceding
27fiscal year.

end insert
begin insert

28(iii) The amount of any previously allocated credits that have
29been recaptured.

end insert
begin insert

30(B) Paragraphs (4) and (5) shall not apply to the aggregate
31amount of credit allocated pursuant to this paragraph.

end insert
begin delete

32(3)

end delete

33begin insert(4)end insert Each fiscal year, 25 percent of the aggregate amount of the
34credit that may be allocated pursuant to this section and Section
35 17059.2 shall be reserved for “small business,” as defined in
36Section 17053.73 or 23626.

begin delete

37(4)

end delete

38begin insert(5)end insert Each fiscal year, no more than 20 percent of the aggregate
39amount of the credit that may be allocated pursuant to this section
40shall be allocated to any one taxpayer.

P13   1(h) GO-Biz may prescribe rules and regulations as necessary to
2carry out the purposes of this section. Any rule or regulation
3prescribed pursuant to this section may be by adoption of an
4emergency regulation in accordance with Chapter 3.5 (commencing
5with Section 11340) of Part 1 of Division 3 of Title 2 of the
6Government Code.

7(i) (1) A written agreement between GO-Biz and a taxpayer
8with respect to the credit authorized by this section shall not
9restrict, broaden, or otherwise alter the ability of the taxpayer to
10assign that credit or any portion thereof in accordance with Section
1123663.

12(2) A written agreement between GO-Biz and a taxpayer with
13respect to the credit authorized by this section must comply with
14existing law on the date the agreement is executed.

15(j) (1) Upon the effective date of this section, the Department
16of Finance shall estimate the total dollar amount of credits that
17will be claimed under this section with respect to each fiscal year
18from the 2013-14 fiscal year to the 2024-25 fiscal year, inclusive.

19(2) The Franchise Tax Board shall annually provide to the Joint
20Legislative Budget Committee, by no later than March 1, a report
21of the total dollar amount of the credits claimed under this section
22with respect to the relevant fiscal year. The report shall compare
23the total dollar amount of credits claimed under this section with
24respect to that fiscal year with the department’s estimate with
25respect to that same fiscal year. If the total dollar amount of credits
26claimed for the fiscal year is less than the estimate for that fiscal
27year, the report shall identify options for increasing annual claims
28of the credit so as to meet estimated amounts.

29(k) This section is repealed on December 1, 2025.

30begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

This act provides for a tax levy within the meaning of
31Article IV of the Constitution and shall go into immediate effect.

end insert
begin delete
32

SECTION 1.  

It is the intent of the Legislature to enact
33legislation to improve the California Competes Tax Credit program
34to better serve areas with high unemployment.

end delete


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