ANNOUNCEMENT 11 Jul 2013

In 2013 the state of California revised its incentives law, in part by repealing older provisions of law and replacing them with new tax exemptions.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising
Inception date: 01 Jan 2014 | Removal date: 01 Jan 2025

Tax or social insurance relief

On July 11, 2013 the governor of California signed into law a bill (AB93) that revises the state’s incentives law.

One provision of this bill repealed previous statutes providing for credits against the Personal Income Tax Law and the Corporation Tax Law, replacing them with a new credit system against tax. Beginning on or after January 1, 2014, and before January 1, 2025, such credits may be provided in an amount as provided in a written agreement between the Governor’s Office of Business and Economic Development and the taxpayer. Such agreements are subject to approval by the California Competes Tax Credit Committee (as established by this bill), based on specified factors. These factors include the number of jobs the taxpayer will create or retain in the state, and the amount of investment in the state by the taxpayer.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A