Silicon Valley Leadership Group
TAX POLICY
2013-2015 Work Plan
Mission Statement
Advocate for tax policies, regulations and legislation that stimulate business prosperity, economic
growth, and provide fair, reasonable and efficient administrative policies for taxpayers and
government alike. Specifically, the Tax Policy Committee seeks to:
 Build coalitions to improve U.S. competitiveness and jobs climate through comprehensive
business tax reform, strategic opportunities to repatriate foreign earnings and lower business
tax rates to level the playing field with foreign competitors.
 Level the playing field on the weighting assigned to state sales apportionment factors.
 Promote statewide tax fairness by the legislature, Franchise Tax Board, Board of Equalization
and County Assessors.
 Closely coordinate efforts on each issue with the Board of Directors, executives, Committee
members, and overall membership through “CEO and Committee Issue Champions.”
PRIORITY
U.S. Comprehensive
Business Tax Reform
(see Federal Issues
Committee work
plan)
Permanent U.S.
Research and
Development Tax
Credit (see Federal
Issues Committee
work plan)
State Research and
Development Credit
– protect and
strengthen
Support State
Mandatory Single
Sales Factor
Apportionment
STRATEGY
CHAMPION
 Continue participation in the Tech Tax Coalition
with ITIC, Tech America and TechNet to advocate
with Congress and Administration in favor of a
lower business tax rate, a temporary repatriation
of foreign income to the U.S. at a lower tax rate,
preserve and enhance a permanent federal R&D
Tax Credit.
 Monitor impacts of federal business tax reform on
California business tax policy to determine if state
conformity to federal level is necessary.
 Offer national and local media support through
opinion pieces and comments as needed.
 Work with the Federal Issues Policy Committee on
the strategy and timing.
 Continue participation in the broad-based
National R&D Credit Coalition through letters to
legislators, roundtable talks and office visits.
 Reinforce the importance of the R&D tax credit to
Congressional Leaders and the White House to
stimulate innovation and create jobs by
enhancing how the credit is applied to activities.
 Actively advocate in support of a permanent R&D
Tax Credit during upcoming discussions involving
comprehensive business tax reform. Host
roundtable discussions in Silicon Valley with key
stakeholders involved with rewriting the U.S.
business tax code for the first time since 1978.
TBD
 Oppose attempts to limit or repeal R&D tax credit.
 Encourage increase to the state R&D tax credit
rate to match or surpass the 20% federal rate.
 Promote ways to make the R&D tax credit more
valuable to California companies (such as
monetizing excess credits or allowing credits to be
used to reduce employment taxes).
 Provide advocacy to protect the way multi-state
businesses calculate California taxable income
based solely on sales in the state.
 Educate the Governor and Legislature to
TBD
TBD
TBD
Silicon Valley Leadership Group
TAX POLICY
2013-2015 Work Plan
Formula
State Sales and Use
Tax Exemption for
R&D/Manufacturing
Equipment
Purchases
Split Roll Property
Taxation
Onerous Reporting
Trial de Novo
Other Potential
Legislation and
Ballot Measures
eliminate job growth tax penalties.
 Monitor CA status on the MTC and SSF impacts.
 If California’s SSF becomes mandatory support
companies who have deferred tax assets by
advocating for a transition period for companies
who may not be able to utilize their deferred tax
assets as a result of the change to SSF.
 Work with statewide coalition partners to support
exempting sales and use taxes on the purchases
of manufacturing and research productive assets.
 Educate legislators and Administration that
California should join the majority of states who
offer exemptions for capital investments.
 Partner with Assessors to advocate against
separately taxing business real property from the
tax imposed on residential property (including
arbitrary reassessments of business property).
 Defend against proposals requiring businesses to
disclose tax information on state websites.
 Monitor CA Revenue & Taxation Code Section
5170 and strongly support the independent
judicial review of local property tax appeals.
 Closely monitor and advocate against
legislation/ballot measures which disproportionately increase California business tax burden
jeopardizing business competitiveness.
TBD
TBD
TBD
TBD
TBD
Productive Dialogue
with Statewide
County Assessors
 Partner with County Assessors Association and
Silicon Valley Tax Directors Group to hold an
annual dinner to educate on changes to
valuation tables, consistent audit process
efficiencies and open lines of communication with
County Assessors.
 Work with Assessors as they evaluate how to assess
new innovations and technology, closely monitor
and communicate discrepancies/trends with
property tax assessments.
TBD
State Board of
Equalization
Regulations and
Rules
 Nortel refund claims – Technology Transfer
Agreements, sec. 1507: Work with broader
coalition to develop simple and fair application of
tax to software as a technology transfer
agreement in light of the Nortel decision.
 Leverage roundtables with Santa Clara County
Assessor and those outside of Silicon Valley (e.g.
San Diego, Stanislaus and Ventura) on embedded
software assessment treatment by auditors.
 Work with Board of Equalization to develop
reasonable valuations for business taxpayers.
TBD
Embedded Software
TBD
For more information on Tax Policy, please contact Kirk Everett, Vice President of Government
Relations and Tax Policy at keverett@svlg.org or 408-501-7856 or Grace Kay, Federal and State
Policy Associate at gkay@svlg.org or 408-501-7881.
Silicon Valley Leadership Group
TAX POLICY
2013-2015 Work Plan