AB 2084CaliforniaProcess complete

Nonprofits using federal 501(c)(3) proof may keep California tax breaks after federal status loss

California officials may keep a nonprofit’s state tax exemption based on federal 501(c)(3) proof after federal suspension or revocation unrelated to dishonesty, misused funds, or reporting or governance failures.

What it does

California tax officials may keep a nonprofit’s state tax break based on federal 501(c)(3) proof after federal suspension or revocation, if the federal action was unrelated to dishonesty, misused funds, or reporting or governance failures.

Argument forNonprofits using federal 501(c)(3) proof could keep their California tax break after a federal suspension or revocation unrelated to dishonesty, misused funds, or reporting or governance failures.

Argument againstNonprofits using federal 501(c)(3) proof might face uncertain California taxes after a federal suspension unrelated to dishonesty, misused funds, or reporting or governance failures because officials can choose whether to keep their tax break.

More detail

The Franchise Tax Board may keep a nonprofit’s California income tax exemption after its federal 501(c)(3) status is suspended or revoked. This applies to nonprofits whose California exemption was established by submitting proof of federal 501(c)(3) status. The federal action must be unrelated to fraud or intentional false statements, misuse or diversion of nonprofit funds, missed required returns or reports, or other reporting or governance violations. This discretion took effect on September 30, 2026, when the governor approved the bill.

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More on this bill

Where it stands

IntroducedFeb 18
Passed AssemblyMay 21
Passed SenateAug 20
To GovernorAug 27
Became LawSep 30

Looking ahead

No hearings or votes scheduled.

History

2026
1. Sep 30Chaptered by Secretary of State - Chapter 921, Statutes of 2026.Latest
2. Sep 30Approved by the Governor Gavin Newsom.Became Law
3. Aug 27Enrolled and presented to the Governor at 4 p.m.To Governor
4. Aug 20In Assembly. Ordered to Engrossing and Enrolling.Minor
  - Vote recorded 3rd Reading AB2084 Bauer-Kahan By McNerney. Result: pass.Upper
5. Aug 20Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 10. Page 5584.).Passed Senate
6. Aug 13Read second time. Ordered to third reading.Minor
  - Vote recorded Do pass. Result: pass.Upper
7. Aug 13From committee: Do pass. (Ayes 5. Noes 2.) (August 13).Minor
8. Aug 3In committee: Referred to APPR. suspense file.Minor
  - Vote recorded Placed on suspense file. Result: pass.Upper
9. Jun 24From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.Minor
  - Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
10. Jun 3Referred to Com. on REV. & TAX.Minor
11. May 21In Senate. Read first time. To Com. on RLS. for assignment.Minor
  - Vote recorded AB 2084 Bauer-Kahan Assembly Third Reading. Result: pass.Lower
12. May 21Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 16. Page 5224.)Passed Assembly
13. May 18Read second time. Ordered to third reading.Minor
14. May 14From committee: Do pass. (Ayes 11. Noes 3.) (May 14).Minor
  - Vote recorded Do pass. Result: pass.Lower
15. May 14Joint Rule 62(a), file notice suspended. (Page 5030.)
16. May 13In committee: Set, first hearing. Referred to APPR. suspense file.Minor
17. Apr 28From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 27). Re-referred to Com. on APPR.Minor
18. Apr 27
  - Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
19. Apr 21Re-referred to Com. on REV. & TAX.Minor
20. Apr 20From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
21. Apr 13In committee: Set, second hearing. Referred to REV. & TAX. suspense file.Minor
22. Apr 6In committee: Set, first hearing. Hearing canceled at the request of author.
23. Apr 6Re-referred to Com. on REV. & TAX.Minor
24. Mar 27From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
25. Mar 2Referred to Com. on REV. & TAX.Minor
26. Feb 19From printer. May be heard in committee March 21.
27. Feb 18Read first time. To print.Introduced

Taxes & Budget

Issue with this bill?

AB 2084CaliforniaProcess complete

Nonprofits using federal 501(c)(3) proof may keep California tax breaks after federal status loss

What it does

More detail

Where do you stand?

Tell your reps

Take a position to see your representatives and ways to contact them.

More on this bill

Where it stands

IntroducedFeb 18
Passed AssemblyMay 21
Passed SenateAug 20
To GovernorAug 27
Became LawSep 30

Looking ahead

No hearings or votes scheduled.

History

2026
1. Sep 30Chaptered by Secretary of State - Chapter 921, Statutes of 2026.Latest
2. Sep 30Approved by the Governor Gavin Newsom.Became Law
3. Aug 27Enrolled and presented to the Governor at 4 p.m.To Governor
4. Aug 20In Assembly. Ordered to Engrossing and Enrolling.Minor
  - Vote recorded 3rd Reading AB2084 Bauer-Kahan By McNerney. Result: pass.Upper
5. Aug 20Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 10. Page 5584.).Passed Senate
6. Aug 13Read second time. Ordered to third reading.Minor
  - Vote recorded Do pass. Result: pass.Upper
7. Aug 13From committee: Do pass. (Ayes 5. Noes 2.) (August 13).Minor
8. Aug 3In committee: Referred to APPR. suspense file.Minor
  - Vote recorded Placed on suspense file. Result: pass.Upper
9. Jun 24From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.Minor
  - Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
10. Jun 3Referred to Com. on REV. & TAX.Minor
11. May 21In Senate. Read first time. To Com. on RLS. for assignment.Minor
  - Vote recorded AB 2084 Bauer-Kahan Assembly Third Reading. Result: pass.Lower
12. May 21Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 16. Page 5224.)Passed Assembly
13. May 18Read second time. Ordered to third reading.Minor
14. May 14From committee: Do pass. (Ayes 11. Noes 3.) (May 14).Minor
  - Vote recorded Do pass. Result: pass.Lower
15. May 14Joint Rule 62(a), file notice suspended. (Page 5030.)
16. May 13In committee: Set, first hearing. Referred to APPR. suspense file.Minor
17. Apr 28From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 27). Re-referred to Com. on APPR.Minor
18. Apr 27
  - Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
19. Apr 21Re-referred to Com. on REV. & TAX.Minor
20. Apr 20From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
21. Apr 13In committee: Set, second hearing. Referred to REV. & TAX. suspense file.Minor
22. Apr 6In committee: Set, first hearing. Hearing canceled at the request of author.
23. Apr 6Re-referred to Com. on REV. & TAX.Minor
24. Mar 27From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
25. Mar 2Referred to Com. on REV. & TAX.Minor
26. Feb 19From printer. May be heard in committee March 21.
27. Feb 18Read first time. To print.Introduced

Taxes & Budget

Issue with this bill?

What it does

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Choose your position

Tell your reps

More on this bill

Where it stands

Looking ahead

History

What it does

Where do you stand?

Choose your position

Tell your reps

More on this bill

Where it stands

Looking ahead

History