Bill > SB711

This bill addresses federal tax conformity for California state tax law, updating various provisions of the Revenue and Taxation Code to align with federal tax changes. The bill proposes to update the specified date of referenced Internal Revenue Code sections from January 1, 2015, to January 1, 2025, for taxable years beginning on or after January 1, 2025. This means that California will adopt federal tax law provisions as they existed on January 1, 2015, with some specific modifications and exceptions. The bill makes numerous technical changes across different sections of tax law, including modifications to provisions related to: 1. Low-income housing tax credits 2. Research and experimental expenditures 3. Net operating loss deductions 4. Charitable contributions 5. Depreciation and asset expensing 6. Various business and investment-related tax treatments The bill aims to provide clarity and reduce administrative complexity for taxpayers and tax agencies by establishing a consistent reference point for federal tax code provisions. It also includes provisions to selectively adopt or reject specific federal tax law changes, ensuring that California's tax code reflects state-specific policy priorities. The bill is designated as an urgency statute, meaning it will go into immediate effect to provide timely tax relief and administrative simplification for taxpayers.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB711