California LAO Reports on Governor’s Proposed Business Tax Incentives
Citations: The 2021-22 Budget: Business Tax Incentives
SUMMARY BY TAX ANALYSTS
The California Legislative Analyst’s Office (LAO) released a report analyzing various business tax incentives provided for in Democratic Gov. Gavin Newsom's proposed fiscal 2022 budget, which largely incorporate one-time increases in existing tax credits and exclusions, including the elective S corporation tax, the sales tax exclusion for purchases for some manufacturing activities, and the Main Street Credit.
The LAO offered its recommendations after evaluating the proposals’ ramifications on local government revenue, and which businesses would receive assistance in light of the COVID-19 pandemic.