WeVote
Log In

Bill

Bill

SB 1120

Personal Income Tax Law: Corporation Tax Law: credits: CalCompetes.

2025-2026 Regular Session Introduced by Jerry McNerney

SB 1120 modifies California tax law to adjust credits under CalCompetes, potentially affecting state revenue and business incentives, but specific changes remain unclear pending committee assignment.

Set for hearing May 14.
#calcompetes #corporationtaxlaw #personalincometaxlaw #credits
0
WeVote Research Nonpartisan
Bill Summary · SB 1120

Legislative bill overview

SB 1120 proposes modifications to California's personal income tax and corporation tax laws, specifically relating to tax credits under a program or provision called "CalCompetes." The bill was recently introduced and is currently in the Rules Committee for assignment to substantive committees. Specific details about what credits are being created, modified, or eliminated are not yet available from the bill's current stage.

Why is this important

Tax credits directly affect state revenue and can influence business investment and economic development decisions. California's tax competitiveness is frequently debated, as the state has among the highest income and corporate tax rates nationally. Any modifications to the CalCompetes framework could impact both the state budget and business location decisions, particularly for mid-sized and growing companies.

Potential points of contention

  • Revenue impact: Whether the state can afford the tax credits or if they represent foregone revenue that could fund other priorities
  • Economic effectiveness: Whether tax credits actually incentivize new business activity or primarily benefit companies that would invest anyway
  • Equity concerns: Whether tax benefits disproportionately favor certain industries, company sizes, or geographic regions over others

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.