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

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Passed Legislature

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

Sponsor: McNerney
Last action: 2026-04-17
Official status: Set for hearing April 27.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on changes to application processes for the tax credit.

California Competes Tax Credit Extension

This law extends a tax credit program called California Competes, which helps businesses by reducing their taxes if they create jobs or invest in the state.

What This Bill Does

Extends the California Competes Tax Credit until January 1, 2035.
Allows certain companies to get money back from the government through this tax credit starting in 2026.

Who It Names or Affects

Businesses that create or retain jobs in California.
Companies investing in strategic industries in California.

Terms To Know

California Competes Tax Credit: A program where businesses can get tax breaks if they invest in and grow their operations in California.
Strategic industry: Certain industries that the state considers important for economic growth, such as technology or renewable energy.

Limits and Unknowns

The bill does not specify which strategic industries qualify.
It is unclear how much money will be available in the Tax Relief and Refund Account or Corporation Tax Fund to support this program.

Bill History

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.) (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

Read the full stored bill text

Download Bill PDF