CA Senate Committee on Governance and Finance SB1349

California law allows various income tax credits, deductions, exemptions, and exclusions. The Legislature enacts such tax incentives either to compensate taxpayers for incurring certain expenses, such as child adoption, or to influence certain behavior, such as charitable giving. The Legislature uses tax incentives to encourage taxpayers to do something that but forthe tax credit,they would otherwise not do. The Department of Finance is required annually to publish a list of state tax expenditures, currently totaling around $81.1 billion per year.