How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(a)(1)–(2) For each taxable year beginning on and after January 1, 2014, and before January 1, 2035, there shall be allowed as a credit against the "net tax," as defined in Section 17039, an amount as determined by the committee pursuant to paragraph (3) and approved pursuant to Section 18410.2. (2) For taxable years beginning on or after January 1, 2026, and before January 1, 2035, a taxpayer in a strategic industry may elect for the credit allowed by this section to be refundable subject to the provisions of subdivision (e).
Section 1 of the bill amends Revenue and Taxation Code § 17059.2 to extend the California Competes Tax Credit for personal income tax purposes. The key changes are: extending the credit availability from taxable years beginning before January 1, 2030 to taxable years beginning before January 1, 2035; extending the fiscal year allocation period from the 2027–28 fiscal year through the 2032–33 fiscal year; extending the refundability election for strategic-industry taxpayers through the same period; and extending the section's repeal date from December 1, 2030 to December 1, 2035.
This section does not regulate AI systems or impose any AI-related compliance obligations. It is a tax credit provision governing economic development incentives.
(a)(1)–(2) For each taxable year beginning on and after January 1, 2014, and before January 1, 2035, there shall be allowed as a credit against the "tax," as defined in Section 23036, an amount as determined by the committee pursuant to paragraph (3) and approved pursuant to Section 18410.2. (2) For taxable years beginning on or after January 1, 2026, and before January 1, 2035, a taxpayer in a strategic industry may elect for the credit allowed by this section to be refundable subject to the provisions of subdivision (e).
Section 2 of the bill makes conforming amendments to Revenue and Taxation Code § 23689, the Corporation Tax Law counterpart to § 17059.2. The changes mirror those in Section 1: extending the credit through taxable years beginning before January 1, 2035, extending fiscal year allocation authority through the 2032–33 fiscal year, extending the strategic-industry refundability election, and moving the repeal date to December 1, 2035.
Like Section 1, this section does not regulate AI systems or impose any AI-related compliance obligations.