Income taxes: passive activities: forest management costs.

The Personal Income Tax Law, in modified conformity with federal law, generally disallows passive activity loss and passive activity credits for any taxable year in computing taxable income. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would provide that the limitations on passive activity losses and credits do not apply to forest management costs, as defined, of up to $25,000, as provided. The bill would also state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.