California Lawmakers Leave Manufacturing Tax Credit for 2026

The California legislature plans next year to revisit an industrial tax credit that failed to advance before lawmakers ended their 2025 session Sept. 13.

The proposed credit (S.B. 587), which would allow California businesses to offset the sales taxes on their manufacturing and research equipment purchases with an income tax credit, was one of several tax items that could be reconsidered in the next session.

Other bills that didn’t advance included one that would have softened penalties for paying taxes via an incorrect method, further regulated the state’s film tax credit program, and awarded property tax exemptions ...