CA AB2389

Reduces the assessed value threshold for local capital investment incentive programs from $150,000,000 to $25,000,000 until July 1, 2015, then restores it to $150,000,000 thereafter, and extends the program repeal date from January 1, 2017 to January 1, 2018.

Transfers administration of capital investment incentive programs from the Business, Transportation and Housing Agency to the Governor's Office of Business and Economic Development (GO-Biz).

Creates a new corporation tax credit for taxable years 2015-2029 allowing qualified major first-tier subcontractors to claim 17.5% of qualified wages paid to full-time employees, with phased aggregate caps of $25,000,000 (years 1-5), $28,000,000 (years 6-10), and $31,000,000 (years 11-15) per calendar year, awarded on a first-come-first-served basis.

Reduces the aggregate amount of California Competes Tax Credits available annually beginning in fiscal year 2015-16 by the amount allocated under the new advanced strategic aircraft program credit.

Takes effect immediately as an urgency statute.