Proposition 39 : Corporate Taxation and Energy Fund

Official title : Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding. Initiative Statute.

State analysis      /    Money trail

Summary :

1. Requires multistate businesses to calculate their California income tax liability based on the percentage of their sales in California.
2. Repeals existing law giving multistate businesses an option to choose a tax liability formula that provides favorable tax treatment for businesses with property and payroll outside California.
3. Dedicates 50%, up to $550 million annually for 5 years for the purpose of funding projects that create energy efficiency and clean energy jobs in California. The rest would go in the General Fund.

Notes:

1. There is specific language related to large cable companies.
2. Eligible energy projects include:
   1. energy efficiency retrofits and alternative energy projects in public schools, colleges, universities, and other public facilities
   2. financial and technical assistance for energy retrofits
   3. job training and workforce development programs related to energy efficiency and alternative energy
   4. Expected increase in revenues of $1B annually. Currently $9.6B.