CaliforniaCorporate tax: exclusions: qualifying shipping activities.
What it does
The Corporation 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.
More detail
Existing federal income tax law authorizes a qualifying vessel operator, as defined, to elect to determine its corporate tax burden for specified international shipping activities using a per-ton rate and provides an exclusion from gross income for qualifying shipping activities of an electing corporation or a member of an electing group, as specified.
This bill, for taxable years beginning on or after January 1, 2026, would provide an exclusion from gross income for qualifying shipping activities of an electing corporation or a member of an electing group for which an election is in effect under the above-described federal law, as specified. The bill would also provide special rules relating to depreciation and basis of a qualifying vessel, as defined, and would, in conformity with federal income tax laws, provide for the nonrecognition of gain from the disposition of a qualifying vessel where the electing corporation acquires a replacement qualifying vessel, as provided.
This bill would take effect immediately as a tax levy.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 14May 14 hearing: Held in committee and under submission.Latest
- May 12Set for hearing May 14.
- May 11May 11 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- May 7Set for hearing May 11.
- May 6From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 4154.) (May 6). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Apr 9Set for hearing May 6.
- Apr 8Re-referred to Com. on REV. & TAX.Minor
- Mar 23From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.Major
- Feb 26Referred to Com. on RLS.Minor
- Feb 18From printer. May be acted upon on or after March 20.
- Feb 17Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced