SB 1120: Personal Income Tax Law: Corporation Tax Law: credits: CalCompetes.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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 prescribed by GO-Biz for the California Competes Tax Credit to be refundable to the taxpayer from the Tax Relief and Refund Account or the Corporation Tax Fund, as provided. By increasing the payments from the Tax Relief and Refund Account and the Corporation Tax Fund, continuously appropriated funds, the bill would make an appropriation.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. May 14, 2026May 14 hearing: Held in committee and under submission.
2. May 8, 2026Set for hearing May 14.
3. April 27, 2026April 27 hearing: Placed on APPR. suspense file.
4. April 17, 2026Set for hearing April 27.
5. April 13, 2026Read second time and amended. Re-referred to Com. on APPR.
6. April 9, 2026From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 3795.) (April 8).
7. March 26, 2026From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
8. March 25, 2026Set for hearing April 8.
9. February 26, 2026Referred to Com. on REV. & TAX.
10. February 18, 2026From printer. May be acted upon on or after March 20.
11. February 17, 2026Introduced. Read first time. To Com. on RLS. for assignment. To print.