CA Promised Tax Breaks in 2008, Now Fining Investors Who Took Advantage
Back in 2008, the government of California promised substantial tax breaks to businesses that invested in certain types of business. After those tax breaks were struck down by a court, however, the Franchise Tax Board is clawing back all of that money from businesses, which in some cases may amount to up to $250,000.
“They relied on California law as it was written,” said Sen. Ted Lieu (D-Redondo Beach), that they would get a tax break.” But now those businessowners are being penalized – up to 2,000 of them. The total amount could be $210 million. “They obviously can’t go backwards 5 years in time and change their investment or change what they did,” said Lieu. Investors worried about being targeted have said they do not want to talk to local media, afraid that the Franchise Tax Board will single them out.