SB-1120 • 2026

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

Budget Elections Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: McNerney
Last action: 2026-05-14
Official status: May 14 hearing: Held in committee and under submission.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

SB 1120, as amended, McNerney.

What This Bill Does

SB 1120, as amended, McNerney.
Personal Income Tax Law: Corporation Tax Law: credits: CalCompetes.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws including, for taxable years beginning on and after January 1, 2014, and before January 1, 2030, a California Competes Tax Credit in an amount allocated by the Governor’s Office of Business and Economic Development (GO-Biz) through the 2027–28 fiscal year, and provided in a written agreement between GO-Biz and the taxpayer, approved by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer.
This bill would extend the California Competes Tax Credit through taxable years beginning before January 1, 2035, and would make conforming changes to the impacted fiscal year references in those provisions.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-05-14 California Legislative Information
May 14 hearing: Held in committee and under submission.
2026-05-08 California Legislative Information
Set for hearing May 14.
2026-04-27 California Legislative Information
April 27 hearing: Placed on APPR. suspense file.
2026-04-17 California Legislative Information
Set for hearing April 27.
2026-04-13 California Legislative Information
Read second time and amended. Re-referred to Com. on APPR.
2026-04-09 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 3795.) (April 8).
2026-03-26 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2026-03-25 California Legislative Information
Set for hearing April 8.
2026-02-26 California Legislative Information
Referred to Com. on REV. & TAX.
2026-02-18 California Legislative Information
From printer. May be acted upon on or after March 20.
2026-02-17 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 1120, as amended, McNerney.
Personal Income Tax Law: Corporation Tax Law: credits: CalCompetes.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws including, for taxable years beginning on and after January 1, 2014, and before January 1, 2030, a California Competes Tax Credit in an amount allocated by the Governor’s Office of Business and Economic Development (GO-Biz) through the 2027–28 fiscal year, and provided in a written agreement between GO-Biz and the taxpayer, approved by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer.
This bill would extend the California Competes Tax Credit through taxable years beginning before January 1, 2035, and would make conforming changes to the
impacted fiscal year references in those provisions. The bill would, for taxable years beginning on or after January 1, 2026, and before January 1, 2035, also allow a taxpayer in a strategic industry, as defined, to make an election in the form and manner
provided
prescribed
by GO-Biz for the California Competes Tax Credit to be refundable to the taxpayer from the Tax Relief and Refund
Account,
Account or the Corporation Tax Fund,
as provided. By increasing the payments from the Tax Relief and Refund
Account, a
Account and the Corporation Tax Fund,
continuously appropriated
fund,
funds,
the bill would make an appropriation.

Current Bill Text

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