Amended in Senate August 15, 2016

Amended in Assembly May 27, 2016

Amended in Assembly April 12, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2900

Introduced by Committee on Jobs, Economic Development, and the Economy (Assembly Members Eduardo Garcia (Chair), Brough, Brown, Chau, Chu, Gipson, Irwin, and Mathis)

March 3, 2016

An act to add Chapter 8 (commencing with Section 7400) to Part 1 of Division 2 of the Public Contract Code, begin insert and to amend Sections 17059.2 and 23689 of the Revenue and Taxation Code, end insert relating to economic development.

LEGISLATIVE COUNSEL’S DIGEST

AB 2900, as amended, Committee on Jobs, Economic Development, and the Economy. Small business technical assistance begin delete centers. end delete begin insert centers: income taxation: credits: California Competes Tax Credit Committee: GO-Biz. end insert

Existing law, the Small Business Procurement and Contract Act, requires the Director of General Services and other state agencies that enter into contracts for the provision of goods, services, and information technology and for the construction of state facilities to establish goals for the participation of small businesses in these contracts, to provide for small business preference in the award of these contracts, to give special consideration and special assistance to small businesses, and, whenever possible, to make awards to small businesses, as specified.

This bill, for contracts awarded on or after September 1, 2017, and before December 31, 2021, would require an awarding department, as defined, to report to the Legislature by a specified date following any year that state funds are awarded to a federal small business technical assistance center, as defined. The bill would require a federal small business technical assistance center, as a condition of receiving state funds, to report certain information to the awarding department, including, but not limited to, the total number of businesses assisted.

begin insert

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. Existing law limits the aggregate amount of credit that may be allocated in a fiscal year. Existing law requires the Governor’s Office of Business and Economic Development to post on its Internet Web site specified information, including the name of each taxpayer allocated a credit, the estimated number of jobs created or retained and the amount of investment by the taxpayer, the amount of credit allocated to the taxpayer, and, if applicable, the amount of credit recaptured from the taxpayer.

end insert begin insert

This bill additionally would require the Governor’s Office of Business and Economic Development to post on its Internet Web site, the primary location where the taxpayer has committed to increasing the net number of jobs or make investments, information that identifies each tax credit award that was given a priority for being located in an area of high unemployment or poverty, and information that identifies each tax credit award that is being counted toward the amount of the credit required to be allocated to small business, as provided.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Chapter 8 (commencing with Section 7400) is
added to Part 1 of Division 2 of the Public Contract Code, to read:

 

Chapter  8. Small Business Technical Assistance Centers

 

7400.  

(a) Following any year that state funds are awarded by
an awarding department to a federal small business technical
assistance center, the awarding department shall provide a report
to the Legislature that includes, at a minimum:

(1) The purpose of the contract and contract metrics.

(2) The amount of state funds awarded and expended during
the report year.

(3) The information required by subdivision (c).

(b) The information in the report to the Legislature described
in paragraph (3) of subdivision (a) shall be based on information
provided by the federal small business development center pursuant
to subdivision (c).

(c) As a condition of being awarded state funds, a federal small
business technical assistance center shall report to the awarding
department all of the following:

begin delete

(1) The amount of federal funds drawn down as a result of
funding through the state contract, if any.

end delete begin delete

(2)

end delete

begin insert (1) end insert  The total number of businesses assisted.

begin delete

(3)

end delete

begin insert (2) end insert  The number of businesses assisted by industry sector, as
reported by the businesses.

begin delete

(4)

end delete

begin insert (3) end insert  The number of businesses assisted by city and county. If the
population of the county is less than 250,000, only the name of
the county is required to be reported.

begin delete

(5)

end delete

begin insert (4) end insert  The number of businesses assisted based on the following
categories: no employees, five or fewer employees, 25 or fewer
employees, 100 or fewer employees, and between 101 and 500
employees, as reported by the businesses.

begin delete

(6)

end delete

begin insert (5) end insert  If job creation is one of the purposes of the program, the
total number of jobs created and the total number of jobs retained,
as reported by the business.

begin delete

(7) Other program outcomes related to the purpose of the
program and contract measurements and metrics, as determined
by the awarding department.

end delete

(d) For the purposes of this section, the following terms shall
have the following meanings:

(1) An “awarding department” means a department, board,
agency, or authority of the state, or an officer, agent, or other
authorized representative of such a state entity awarding a contract
for services, including technical assistance to small businesses.

(2) A “federal small business technical assistance center” means
a Small Business Development Center, a Women’s Business
Center, a Veteran Business Outreach Center, or a Procurement
Technical Assistance Center operating in California under a federal
contract.

(3) A “Procurement Technical Assistance Center” means the
entity and individual, physical location, recognized by the United
States Department of Defense where a small business owner can
receive free training on a variety of state and federal procurement
issues, that is operated by the Department of Defense pursuant to
Chapter 142 (commencing with Section 2411) of Part IV of Subtitle
A of Title 10 of the United States Code.

(4) A “Small Business Development Center” means the entity
and individual, physical location, recognized by the federal Small
Business Administration where a small business owner or an
aspiring entrepreneur can receive free one-on-one consulting and
low at-cost training on a variety of topics including starting,
operating, and expanding a small business, that is operated by the
Small Business Administration and is authorized by “The Small
Business Development Center Act of 1980” (Public Law 96-302).

(5) A “Veteran Business Outreach Center” means the entity and
individual, physical location, recognized by the federal Small
Business Administration where a small business veteran owner or
an aspiring veteran entrepreneur can receive free one-on-one
consulting and low at-cost training on a variety of topics including
starting, operating, and expanding a small business, that is operated
by the Small Business Administration pursuant to Section 657b
of Title 15 of the United States Code.

(6) A “Women’s Business Center” means the entity and
individual, physical location, recognized by the federal Small
Business Administration where a small business owner or an
aspiring entrepreneur can receive free one-on-one consulting and
low at-cost training on a variety of topics including starting,
operating, and expanding a small business, that is operated by the
Small Business Administration and is authorized by the “Women’s
Business Ownership Act of 1988” (Public Law 100-533).

(e) The report to the Legislature, required pursuant to
subdivision (a), shall be submitted in compliance with Section
9795 of the Government Code, and shall be posted on the Internet
Web site of the awarding department.

(f) To the extent that any provision of this chapter conflicts with
a federal regulation or law, the provision shall be inoperable.

(g) As an alternative to submitting the information pursuant to
subdivision (e), an awarding department may include the same
information in another annual report of the awarding department
and, in doing so, the report date in subdivision (a) may be modified
up to three months.

(h) (1) This chapter applies to contracts awarded on or after
September 1, 2017, and before December 31, 2021.

(2) Notwithstanding Section 10231.5 of the Government Code,
this chapter shall become inoperative on January 1, 2022.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 17059.2 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

17059.2.  

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

(2) The credit under this section shall be allocated by GO-Biz
with respect to the 2013-14 fiscal year through and including the
2017-18 fiscal year. The amount of credit allocated to a taxpayer
with respect to a fiscal year pursuant to this section shall be as set
forth in a written agreement between GO-Biz and the taxpayer and
shall be based on the following factors:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(b) For purposes of this section:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

begin insert

(F) The primary location where the taxpayer has committed to
increasing the net number of jobs or make investments. The
primary location shall be listed by city or, in the case of
unincorporated areas, by county.

end insert begin insert

(G) Information that identifies each tax credit award that was
given a priority for being located in a high unemployment or
poverty area, pursuant to paragraph (1).

end insert begin insert

(H) Information that identifies each tax credit award that is
being counted toward the requirement of paragraph (3) of
subdivision (g).

end insert

(7) When determining whether to enter into a written agreement
with a taxpayer pursuant to this section, GO-Biz may consider
other factors, including, but not limited to, the following:

(A) The financial solvency of the taxpayer and the taxpayer’s
ability to finance its proposed expansion.

(B) The taxpayer’s current and prior compliance with federal
and state laws.

(C) Current and prior litigation involving the taxpayer.

(D) The reasonableness of the fee arrangement between the
taxpayer and any third party providing any services related to the
credit allowed pursuant to this section.

(E) Any other factors GO-Biz deems necessary to ensure that
the administration of the credit allowed pursuant to this section is
a model of accountability and transparency and that the effective
use of the limited amount of credit available is maximized.

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

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

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

(2) Notwithstanding Section 19542:

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

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

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

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

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

(A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal
year, one hundred fifty million dollars ($150,000,000) for the
2014-15 fiscal year, and two hundred million dollars
($200,000,000) for each fiscal year from 2015-16 to 2017-18,
inclusive.

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

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

(D) The amount estimated by the Director of Finance, in
consultation with the Franchise Tax Board and the State Board of
Equalization, to be necessary to limit the aggregation of the
estimated amount of exemptions claimed pursuant to Section
6377.1 and of the amounts estimated to be claimed pursuant to
this section and Sections 17053.73, 23626, and 23689 to no more
than seven hundred fifty million dollars ($750,000,000) for either
the current fiscal year or the next fiscal year.

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

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

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

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

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

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

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

(3) Each fiscal year, 25 percent of the aggregate amount of the
credit that may be allocated pursuant to this section and Section
23689 shall be reserved for small business, as defined in Section
17053.73 or 23626.

(4) Each fiscal year, no more than 20 percent of the aggregate
amount of the credit that may be allocated pursuant to this section
shall be allocated to any one taxpayer.

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

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

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

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

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

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 23689 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

23689.  

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

(2) The credit under this section shall be allocated by GO-Biz
with respect to the 2013-14 fiscal year through and including the
2017-18 fiscal year. The amount of credit allocated to a taxpayer
with respect to a fiscal year pursuant to this section shall be as set
forth in a written agreement between GO-Biz and the taxpayer and
shall be based on the following factors:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(b) For purposes of this section:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

begin insert

(F) The primary location where the taxpayer has committed to
increasing the net number of jobs or make investments. The
primary location shall be listed by city or, in the case of
unincorporated areas, by county.

end insert begin insert

(G) Information that identifies each tax credit award that was
given a priority for being located in a high unemployment or
poverty area, pursuant to paragraph (1).

end insert begin insert

(H) Information that identifies each tax credit award that is
being counted toward the requirement of paragraph (3) of
subdivision (g).

end insert

(7) When determining whether to enter into a written agreement
with a taxpayer pursuant to this section, GO-Biz may consider
other factors, including, but not limited to, the following:

(A) The financial solvency of the taxpayer and the taxpayer’s
ability to finance its proposed expansion.

(B) The taxpayer’s current and prior compliance with federal
and state laws.

(C) Current and prior litigation involving the taxpayer.

(D) The reasonableness of the fee arrangement between the
taxpayer and any third party providing any services related to the
credit allowed pursuant to this section.

(E) Any other factors GO-Biz deems necessary to ensure that
the administration of the credit allowed pursuant to this section is
a model of accountability and transparency and that the effective
use of the limited amount of credit available is maximized.

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

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

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

(2) Notwithstanding Section 19542:

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

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

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

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

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

(A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal
year, one hundred fifty million dollars ($150,000,000) for the
2014-15 fiscal year, and two hundred million dollars
($200,000,000) for each fiscal year from 2015-16 to 2017-18,
inclusive.

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

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

(D) The amount estimated by the Director of Finance, in
consultation with the Franchise Tax Board and the State Board of
Equalization, to be necessary to limit the aggregation of the
estimated amount of exemptions claimed pursuant to Section
6377.1 and of the amounts estimated to be claimed pursuant to
this section and Sections 17053.73, 17059.2, and 23626 to no more
than seven hundred fifty million dollars ($750,000,000) for either
the current fiscal year or the next fiscal year.

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

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

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

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

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

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

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

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

(4) Each fiscal year, no more than 20 percent of the aggregate
amount of the credit that may be allocated pursuant to this section
shall be allocated to any one taxpayer.

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

(i) (1) A written agreement between GO-Biz and a taxpayer
with respect to the credit authorized by this section shall not
restrict, broaden, or otherwise alter the ability of the taxpayer to
assign that credit or any portion thereof in accordance with Section
23663.

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

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

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

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