Existing federal law establishes the Supplemental Nutrition Assistance Program (SNAP) , known in California as CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible low-income individuals by each county, as administered by the State Department of Social Services. Existing law establishes the California Special Supplemental Nutrition Program for Women, Infants, and Children (WIC Program) , which is administered by the State Department of Public Health and counties and under which nutrition and other assistance are provided to eligible low-income individuals who have been determined to be at nutritional risk. This bill would create the CalFresh and WIC Contingency Fund. Under the bill, moneys in the fund would be available, upon appropriation, to the above-described departments for CalFresh and WIC programs, respectively, solely for the purpose of maintaining continuity of CalFresh or WIC benefits, as applicable, during a federal government shutdown or other federal appropriations lapse, subject to certain conditions. The bill would authorize the State Department of Public Health, during a federal government shutdown or other federal appropriations lapse affecting the WIC Program, to obtain a temporary loan, line of credit, or other short-term financing arrangement for the purpose of maintaining uninterrupted WIC services and benefit issuance. The bill would authorize receipt of a loan for this purpose, subject to approval by the Director of Finance, from certain sources. The bill would set forth terms and conditions for repayment of the loan. The bill would require the departments to seek federal reimbursement for expenditures made from the fund or for loan repayments. Under the bill, any federal reimbursements received would, as applicable, be used for the loan repayments or be deposited into the fund until the fund is restored to its prewithdrawal balance. If either of the departments uses moneys in the fund, the bill would require the department to subsequently report that use to the Legislature. The bill would also require the departments to submit a joint report to the Legislature and the Department of Finance detailing certain information. The bill would make these provisions severable. The bill would make the provisions inoperative on January 20, 2029, and would repeal them as of January 1, 2030. However, the bill would resume any provisions necessary to effectuate the repayment of loans, the receipt of federal reimbursements, or the preparation and submission of required reports, until those obligations are fully satisfied. The bill would require the Department of Finance to determine the amount of unencumbered funds subject to reversion and to effectuate the transfer to the General Fund as soon as practicable following January 20, 2029.
The Corporation Tax Law imposes on every corporation doing business in the state, as defined, a tax according to or measured by net income and, in the case of a corporation with income derived from or attributable to sources both within and without this state, apportions the income between this state and other states and foreign countries in accordance with a single sales formula based on the sales within and without this state, except that in the case of an apportioning trade or business that derives more than 50% of its gross business receipts from conducting one or more qualified business activities, as defined, business income is apportioned in accordance with a specified 3-factor formula. Existing federal law, for purposes of determining a taxpayer's gross income for federal income tax purposes, requires that a person who is a United States shareholder of any controlled foreign corporation, as defined, to include in their gross income the net CFC tested income, as provided. The Corporation Tax Law, for taxable years beginning on or after January 1, 2003, for purposes of determining income derived from or attributable to sources within this state, allows corporations to make a statutory election as to whether their income is determined on a "water's-edge" basis or on a worldwide unitary basis. Under existing law, the election to report income on a water's-edge basis remains in effect until terminated, and provides conditions for the termination of the election. This bill, for taxable years beginning on or after January 1, 2026, would require a taxpayer that files on a water's-edge basis to account for net CFC tested income within the water's-edge group, as provided. The bill would require a taxpayer that files on a water's-edge basis to include all income and apportionment factors of any corporation, other than a bank, whose sales factor, instead of the average of 3 factors, in the United States is at least 20%. The bill would also terminate all water's-edge elections for the first taxable year beginning on or after January 1, 2028, and would not allow a taxpayer to make a water's-edge election, or file on a water's-edge basis, for taxable years beginning on or after January 1, 2028. The bill would authorize any taxpayer that has made a water's-edge election to terminate that election without the consent of the Franchise Tax Board for taxable years beginning on or after January 1, 2026, and before January 1, 2028. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income. This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a deduction from adjusted gross income for amounts contributed by a qualified taxpayer, as defined, to a catastrophe savings account, in accordance with specified provisions. The bill would define "catastrophe savings account" to mean a savings account or money market account with a financial institution that, among other requirements, is established to pay for the qualified catastrophe expenses, as defined, of a qualified taxpayer establishing the account, as provided. The bill would subject a qualified taxpayer to a specified penalty if they use a distribution from a catastrophe savings account to cover an expense other than a qualified catastrophe expense. The Personal Income Tax Law, in conformity with federal income tax law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would provide an exclusion from gross income for interest earned by a catastrophe savings account, as specified. Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, deductions, exclusions, or exemptions, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would include findings and reporting requirements in compliance with this requirement. This bill would take effect immediately as a tax levy.
The Personal Income Tax Law, in conformity with federal income tax law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing law, known as the Golden State Scholarshare Trust Act, establishes the Golden State Scholarshare College Savings Trust (Scholarshare trust) , under the administration of the Scholarshare Investment Board, to provide financial aid for postsecondary education costs of participating students. Existing state and federal law generally includes in gross income distributions from a qualified tuition program, as defined to include the Scholarshare trust, except as provided. Existing federal law, the Consolidated Appropriations Act, 2023, excludes from gross income, for federal income tax purposes, distributions from a qualified tuition program that are made after December 31, 2023, and are paid in a direct trustee-to-trustee transfer to a Roth IRA, as described. The Personal Income Tax Law generally conforms to federal income tax law relating to qualified state tuition programs, except as specified. Among those exceptions, existing state law does not conform to the above-described exclusion for distributions from a qualified tuition program. This bill would instead conform to that federal exclusion for taxable years beginning on or after January 1, 2026, and before January 1, 2031. The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income. This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a deduction in determining adjusted gross income for contributions to a Scholarshare account by a qualified taxpayer, as specified. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes. This bill, the Fairground Act for Investment and Revitalization, on and after January 1, 2027, and before January 1, 2032, would exempt the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, tangible personal property for use in the construction, development, or ongoing operation of a qualified project, defined to mean a new development project, or new phase of an existing project, that is located on the land of a fairground, undertaken pursuant to a written agreement and approved by a governing body of a fairground, as provided. The bill would require a governing body of a fairground to approve a project. By requiring additional duties be performed by the governing body of a fairground, this bill would impose a state-mandated local program. 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 also would include additional information required for any bill authorizing a new tax expenditure. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws. This bill would provide that the exemption created by the bill does not apply to local sales and use taxes or transactions and use taxes. Existing law imposes or dedicates certain state sales and use tax rates for local funding, including through the Local Revenue Fund 2011. This bill would provide that the exemption created by the bill does not apply to those state sales and use tax rates imposed or dedicated for local government funding, including those rates for which revenues are deposited into the Local Revenue Fund 2011. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. This bill would take effect immediately as a tax levy.
The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, "full cash value" is defined as the assessor's valuation of real property as shown on the 1975–76 tax bill under "full cash value" or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. The California Constitution specifies that "newly constructed" does not include the construction or reconstruction of seismic retrofitting components, as defined by the Legislature. Existing law, pursuant to that constitutional authorization, defines seismic retrofitting components to mean seismic retrofitting improvements and improvements utilizing earthquake hazard mitigation technologies. Existing law, pursuant to constitutional authorization, also excludes from the definition of "newly constructed" the construction or installation of certain fire sprinkler systems, or other fire extinguishing systems, fire detection systems, or fire-related egress improvements. This bill would require the State Board of Equalization to clarify that a home hardening retrofitting improvement, as defined, to an existing structure is considered nonassessable repair and maintenance, provided that the improvement does not add square footage, change the property's use, include structural reconfigurations, or include substantial rehabilitation.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2026, a credit for hiring qualified full-time employees, as defined, within a designated census tract or economic development area in an amount equal to 35% of the qualified wages, defined in part as those wages that exceed 150% of minimum wage but do not exceed 350% of minimum wage, paid to those employees multiplied by the applicable percentage for that taxable year. Existing law exempts certain taxpayers from the above-described census tract or economic development area requirement, as specified, and disallows the above-described credit for specified businesses. Existing law repeals the above-described provisions on December 1, 2029. This bill would extend the operative date for the above-described tax credits through taxable years beginning before January 1, 2031. The bill would extend the above-described repeal date to December 1, 2034. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a young child tax credit to a qualified taxpayer in a specified amount multiplied by the earned income tax credit adjustment factor, as provided. That law also allows a payment from the continuously appropriated Tax Relief and Refund Account for an amount in excess of tax liability. Existing law defines "qualified taxpayer" for this purpose to include an eligible individual, as defined, who has a qualifying child, defined to be a child younger than 6 years of age as of the last day of the taxable year, and who meets other specified criteria. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2038, would instead define a "qualifying child" to mean a child younger than the age limit from the prior taxable year plus one year, as described. The bill, for taxable years beginning on or after January 1, 2038, would define "qualifying child" as being a child younger than 18 years of age, as described. By increasing the payments from the Tax Relief and Refund Account, a continuously appropriated fund, the bill would make an appropriation. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure.
The California Constitution generally limits the maximum rate of ad valorem tax on real property to 1% of the full cash value of the property and defines "full cash value" for these purposes as the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. Pursuant to constitutional authorization, existing property tax law excludes from the definition of "newly constructed" for these purposes the construction or addition of any active solar energy system, as defined, through the 2025–26 fiscal year, including the construction of an active solar energy system incorporated by the owner-builder in the initial construction of a new building that the owner-builder does not intend to occupy or use. This bill would extend, for lien dates commencing on or after January 1, 2027, and before January 1, 2031, the above-described exclusion for the addition of customer-sited, active solar energy systems with a system size of less than or equal to 10 kilowatts and for customer-sited, active solar energy systems that are sited on the property of a public entity customer. The bill would require that, for active solar energy systems sited on the property of a public entity customer, tax savings be utilized to maintain the affordability of, or to reduce the cost of, future lease agreements. The bill would limit the exclusion for active solar energy systems incorporated by the owner-builder to buildings where the initial construction permit for the new building is dated before January 1, 2027. The bill would make conforming changes. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program. Existing law requires bills authorizing a new tax expenditure, as defined, to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for bills authorizing a new tax expenditure. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. This bill would take effect immediately as a tax levy.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a credit against those taxes to a qualified taxpayer, as defined, for 30% of the qualified cleanup expenses paid or incurred during the taxable year, and would limit the credit to $20,000 per taxable year. The bill would define qualified cleanup expenses for this purpose to mean costs directly related to the one-time removal and disposal of unauthorized encampments, illegal dumping, and abandoned property, as provided. The bill would require a taxpayer to certify, under penalty of perjury, that the costs reflected in documentation are directly related to qualified cleanup expenses. The bill would make related findings. By expanding the crime of perjury, this bill would impose a state-mandated local program. 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 also would include additional information required for any bill authorizing a new tax expenditure. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would take effect immediately as a tax levy.
