California Competes tax credit: pharmaceutical companies.

The Personal Income Tax Law and the Corporation Tax Law allow a credit (CalCompetes tax credit) against the taxes imposed under those laws, for each taxable year beginning on and after January 1, 2014, and before January 1, 2030, in an amount as provided in a written agreement between the Governor's Office of Business and Economic Development 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. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill, for the 2021-22 and 2022-23 fiscal years, would increase the total amount of credits that may be allocated by $10,000,000 and would require that those credits be reserved for pharmaceutical companies, as defined. The bill also would include additional information required for any bill authorizing a new income tax credit. This bill would take effect immediately as a tax levy.