TechNet Fights Back Against Proposed Taxes on CA Software and Businesses

Sacramento, CA - TechNet, the national, bipartisan network of tech CEOs and senior executives, is fighting the proposed expansion of California's sales tax to software and a broad range of digital services as well as proposed caps on R&D tax credits that would discourage the innovation investments that have long powered California's economy. As part of the effort, TechNet launched a digital ad campaign urging policymakers to reject proposals that increase the cost of doing business in California and instead focus on policies that strengthen our economic growth, global competitiveness, and technological leadership.

"Software is no longer just a technology industry issue. From payroll and accounting to cybersecurity, cloud services and AI tools, businesses of every size and in every sector rely on software to operate, serve customers and grow," said Robyn Hines, California Director of Strategic Affairs. "California became the innovation capital of the world because it embraced technology, entrepreneurship, and growth. The proposed software tax and R&D tax credit caps move California in the wrong direction by increasing costs on the tools businesses use every day while discouraging the innovation investments that drive the state's economy."

The campaign underscores that digital services are essential business tools and an important part of California's economy. The ads warn that taxing these services would disproportionately affect California employers and entrepreneurs at a time when the state is seeking to attract investment, create jobs, address affordability concerns, and maintain its leadership in innovation and emerging technologies.

You can view the ads here.