Newsom Wants to Extend California Business Tax Credit in Budget

A lucrative tax credit designed to attract new businesses to California should be extended, Gov. Gavin Newsom (D) said in his State of the State address Thursday.

In a speech lauding what he called the state’s economic success, Newsom told state lawmakers they should expand the California Competes Tax Credit, which encourages companies to relocate to or expand their presences in the state. The governor, who will propose his budget for the 2026-27 fiscal year on Friday, also touted previous expansions of the state’s film tax credit and earned income tax credit.

In his formal address to the state ...