This bill is part of the 2022 Cannabis Bills section of our ongoing update on California Cannabis Legislation – see the full California Cannabis Law Legislative Update which includes information on cannabis bills from other years.
SB 1336 (Wiener D) Income taxes: credit: cannabis businesses: qualified expenses.
[Note: This bill was amended in the Assembly on June 9, 2022, and was completely changed from a cannabis bill to a bill requiring that a housing development project be a use by right upon the request of an independent institution of higher education or religious institution. Follow the link above to see the current text of the bill.]
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2023, until January 1, 2028, to a qualified taxpayer, defined to mean a licensed commercial cannabis business that meets specified criteria, in an amount equal to 25% of the total amount of the qualified taxpayer’s qualified expenditures, as defined, in the taxable year not to exceed $250,000 per taxable year, as specified.
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 also would state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a tax expenditure.
This bill would take effect immediately as a tax levy.
Read more about California Cannabis Legislation – see the full California Cannabis Law Legislative Update.
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