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Daily Tax Report: State

Governor Signs California Budget With Business Tax Break Limits

June 30, 2020, 3:02 AM

California Gov. Gavin Newsom signed a bill Monday to increase revenue by $9.2 billion over three years by suspending corporate net operating loss deductions and capping business tax credit claims to $5 million a year.

The bill is part of the budget package lawmakers sent to the Democratic governor for the new fiscal year that starts July 1. He also signed two main budget bills (A.B. 89 and S.B. 74) and 17 other companion bills that carry out their appropriations.

Newsom and lawmakers enacted the tax changes to help close a $54 billion budget gap brought...

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