BILL ANALYSIS Ó
AB 2901
Page 1
Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2901 ( Jobs, Economic Development, and the Economy) - As Amended
April 12, 2016
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|Policy |Jobs, Economic Development, |Vote:|9 - 0 |
|Committee: |and the Economy | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill expands the reporting requirements of the California
Competes Tax Credit Program, administered by the Governor's
Office of Business and Economic Development (GO-Biz), to include
the following information:
1)The primary location of the facility, or facilities, for which
the taxpayer is applying for credits. The primary location
shall be listed by city or, in the case of unincorporated
areas, by county;
AB 2901
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2)Information that identifies each tax credit award that was
given a priority for being located in a high unemployment or
poverty area, as specified; and
3)Information that identifies each tax credit award that is
being counted toward the requirement that each fiscal year,
25% of the aggregate amount of credits allocated are required
to be reserved for small business, as defined.
4)FISCAL EFFECT:
Minor/absorbable cost to GO-Biz. According to GO-Biz,
information identifying the primary location of facilities is
available in the full awardee list and small businesses are
listed in meeting agenda's which are posted online.
COMMENTS:
5)Purpose. According to the author, this bill was developed in
response to an informational hearing on the California
Competes Tax Credit Program. This bill requires reporting on
elements of the tax credit program, including the
identification of business or project location, credits
awarded to small businesses, and credit awards that received
priority consideration. According to the author, these new
reporting requirements are essential to providing appropriate
oversight and program transparency.
AB 2901
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6)Background. The California Competes Tax Credit was established
in 2013 and provides tax credits to businesses that want to
locate or stay and grown in California. Current law requires
GO-Biz to post information on its internet website relating to
each tax credit award, including the taxpayers name, estimated
amount of each taxpayer's investment, estimated number of jobs
created or retained, the amount of the credit allocated to the
taxpayer, and the amount of any recaptured credit.
Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081