SB 777 Summary

• Establishes the California Jumpstart Act, allowing insurance companies to claim tax credits against premium taxes for relief contributions made to certified relief funds for taxable years beginning January 1, 2025 through December 31, 2029.

• Relief funds must invest 100% of their investment authority in small businesses located in economically disadvantaged areas (relief zones) within 2 years, with a total cap of $375 million in investment authority and $300 million in tax credits.

• Creates the Treasury Relief Investment Fund and requires the California Pollution Control Financing Authority (CPCFA) to certify relief funds, approve applications, and recover tax credits if funds fail to meet investment requirements or violate specified conditions.

• Requires relief funds to demonstrate experience improving economic outcomes in low-income communities, submit annual reports on job creation and retention, and conduct outreach to impact businesses owned by minorities, women, disabled veterans, and LGBTQ persons.

• Mandates CPCFA submit annual reports to the Legislature measuring program effectiveness, including jobs created and retained, tax credits issued, and cost per job created.