Category Archives: Legislation
The Los Angeles Times reports: Jerry Brown on Saturday vetoed nine bills that would have provided new tax credits to benefit California lawmakers’ priorities, including low-income housing, energy efficient appliances, seismic retrofits, small businesses, food bank donations and hiring. Brown reminded lawmakers that when he took office in 2011 the state faced a $26.6-billion budget […]
AB 437, sponsored by California Assembly Speaker Toni Atkins, would provide businesses with less than $5 million in gross receipts to receive a cash grant for between 10 and 15 percent of any unused R&D tax credits. According to the Sacramento Business Journal: Under the existing California Research Tax Credit, businesses can reduce their taxes […]
Governor Brown signed SB 1335: This bill would require any bill, introduced on or after January 1, 2015, that would authorize a personal income or corporation tax credit to contain, among other provisions, specified goals, purposes, and objectives that the tax credit will achieve and detailed performance indicators, including data collection requirements, to measure whether […]
The BNA SALT Talk Blog contrasts California’s recent increase in film tax credits with other states who are pulling back on such incentives: Last week, in the shadow of the historic TCL Chinese Theatre in Hollywood, Gov. Jerry Brown signed legislation to increase California’s film tax credits to $330 million per year. California, which has […]
According to the Sacramento Bee: It’s a happy ending for California’s film and television tax credit. Gov. Jerry Brown will sign today the bill expanding the program to $330 million in annual production incentives for the next five years. The effort to reverse declining film and television production in California faced doubts over its effectiveness […]
Partial Sales and Use Tax Exemption on Manufacturing and Research and Development Equipment in California
On July 1, 2014, a new California tax incentive went into effect. The provision allows certain companies involved in manufacturing and research and development, a partial exemption of sales and use tax on the purchase or lease of equipment used in the manufacturing process. The reduction is from the state tax rate of 7.5% down […]
From the Hollywood Reporter: Legislation to expand and extend incentives to keep film and television production in California passed a major milestone. As expected, the California Film and Television Job Retention and Promotion Act of 2014 was approved by the state assembly Wednesday by a unanimous vote of 71-0. The legislation, authored by Assemblymen Mike […]
AB 2517 has been amended to correct a problem introduced last year in AB 106 in which vouchers need to be both submitted and issued before January 1, 2015. Instead of providing taxpayers with certainty that they would be able to receive all of the Enterprise Zone vouchers that they are eligible for, AB 106 […]
Last year AB 106 was passed to allow taxpayers to continue to apply for Enterprise Zone vouchers through 2014. Unfortunately, the bill says that zones “may continue to accept applications for the certification and to issue the certifications up to but no later than January 1, 2015.” The requirement that zones must also issue the […]
According to the Imperial Valley News: AB 1564 Research & Development Tax Credit: With the goal of spurring innovation, business development, and job creation, AB 1564 bill would double the state’s research and development tax credit from 15% to 30%. “An enhanced R&D tax credit helps to incentivize businesses to risk their capital to develop […]
The Desert Sun had an extensive story on Sunday describing some of the local ramifications of the end of the Enterprise Zone program: In 2003, guitar string maker Ernie Ball specifically opened a second location in Coachella in addition to its San Luis Obispo office to hire people who qualified for the tax credit. Ernie […]
California Assemblyman Mike Gatto (D-Los Angeles) and Senator Kevin de León (D-Los Angeles) will be pressing for enhanced tax credits for the film production industry next year, according to California Newswire.
Governor Brown has signed AB 10 which will increase the minimum wage from $8 an hour to $9 an hour on July 1, 2014 and again to $10 an hour starting Jan. 1, 2016. An unintended consequence of the legislation will be an increase in the amount of Enterprise Zone tax credits qualified employers will […]
AB 106, which provides explicit authority to Enterprise Zones to continue processing voucher applications for employees hired through 12/31/2013, has now passed the Assembly. The bill now goes to the Governor who is expected to sign it within the coming weeks.