CA SB194

Exempts gross receipts from diesel fuel sales and use from state sales tax between October 1, 2022 and October 1, 2023, with exemption not applying to local taxes or certain state rates dedicated to local funding.

Requires California Department of Tax and Fee Administration to estimate foregone sales tax revenue from the diesel exemption and have the Controller transfer that amount quarterly to the Public Transportation Account from April 1, 2023 through April 1, 2024.

Expands homeless employment tax credits under Sections 17053.80 and 23629 to include individuals who have received supportive services from homeless providers, allows recertifications, and extends credit repeal dates to December 1, 2027.

Extends California Competes Tax Credit allocation authority through 2027-28 fiscal year at $180,000,000 annually and requires consideration of taxpayer commitment to workforce fairness and willingness to relocate jobs from states with discriminatory laws.

Removes requirement that small business hiring credits be claimed on timely filed original returns, allows one-time abatement of timeliness penalties for individual taxpayers meeting specified conditions, and excludes PPP loan forgiveness under the PPP Extension Act of 2021 from gross income.