Restoration of R&D Tax Credits and NOL Deductions in Gov. Newsom's 2022-23 Budget Proposal

Monday, January 10, 2022

To the Capitol Press Corp,

I would like to share a document with you on behalf of Senator Patricia Bates (R-Laguna Niguel) highlighting the important role R&D tax credits and NOL deductions have in fostering California’s innovative economy. Businesses in the 36th Senate District that take advantage of these tax credits create good, high paying jobs for hundreds of Orange and San Diego County residents. In addition to providing jobs, many of these businesses also invest in their surrounding communities which further cements their commitment to California and its residents.

At the onset of the Covid-19 pandemic, the Governor and the Legislature suspended the tax incentives in order to prepare for the expected financial hardship that was to follow the pandemic lockdown measures; however, Senator Bates voted against the suspension. Last year, the senator called for a full restoration of the tax credits and even offered an amendment to the 2021 budget trailer bill. Regrettably, her amendment was rejected. 

Fast forward to earlier today, we learned the State is set to experience a $21 billion surplus which is in direct contrast from the recession forecast we had anticipated at the beginning of the pandemic. Senator Bates applauds Governor Newsom’s commitment to fully restore the R&D tax credits and NOL deductions. 

To view the document, click here

Respectfully,

Jonathan Munoz
Communications Director
Senator Patricia Bates
36th Senate District