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Committee Actions Today

AB 2476 was placed in suspense in the Assembly Appropriations Committee.

SB 974 passed through the Rev. & Tax. Committee with the author accepting the amendments suggested in the Committee Analysis.

SB 939 was also heard in Rev. & Tax. today, but did not fair as well. From California Chronicle:

SACRAMENTO, CA: Legislation designed to create new jobs and new business opportunities in Northern California has been placed on a Suspense File in the Senate Committee on Revenue and Taxation. SB 939 – authored by Senator Sam Aanestad (R-Grass Valley) focused on the tax advantages that exist in the Oroville Enterprise Zone located in Butte County. The Aanestad measure would have allowed businesses located within the Oroville Enterprise Zone to sell employee tax credits they cannot use.

The sale of these credits could have generated a steady cash income that would have been used to expand business operations, hire additional employees, make additional equipment purchases or could have been used for any other business-related expenses.

Committee members heard testimony on the bill today before moving SB 939 to the Suspense File. Suspense Files are a kind of “legislative limbo” often created to avoid the embarrassment of casting votes against common sense measures. Yet – bills that are sent to Suspense Files are rarely heard from again.

“The Democrats have once again proven that they are the Party of No when it comes to new job and new business creation,” said Senator Aanestad. “With the California unemployment rate at an all time high of nearly 13% — I cannot even begin to understand or fathom why my colleagues across the aisle continue to reject measures that will bring new jobs and new opportunity to California.”

Senator Aanestad introduced SB 939 after hearing that businesses located within the Enterprise Zone have been unable to use these employee tax credits because they have zero state income tax liability. The credits only work if the business in question generates enough of a profit to have a state income tax liability – and many do not.

Senator Aanestad says the sale of the unused credits would have allowed businesses to gain extra income – while businesses purchasing the credits would have received valuable tax breaks from the State of California.

“There is a major employer ready to bring 400 new jobs to Oroville – but those jobs were dependent upon today´s action by the Senate Revenue and Taxation Committee,” said Senator Aanestad. “These are positions that would have brought an immediate boost to the Northern California economy – yet Democrats have shown once again that they are not a bit interested in the plight of California families.”

Businesses located within the Oroville Enterprise Zone can take advantage of five tax-related incentives: the hiring tax credit, the sales and use tax credit, business expense deduction for business property, net operating loss carryover deduction and net interest deduction for lenders.

“Although the Majority Party closed the door today on the idea of new jobs and new opportunity – I will not stop fighting for new opportunity on behalf of all of California,” said Senator Aanestad. “At some point this Legislature must realize that we all must work toward a common goal of job creation.”

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