Income taxation: credits: cannabis: equity applicants and licensees.

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing federal law imposes an income tax upon every corporation, except as specified, and prohibits the allowance of a deduction or credit for any amount paid or incurred during the taxable year in carrying on any trade or business consisting of trafficking in controlled substances, including cannabis. This bill, under both laws, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit to a cannabis equity applicant or licensee who is eligible for a specified fee waiver and deferral program administered by the Department of Cannabis Control, in an amount equal to $10,000. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.