CaliforniaPersonal Income Tax Law and Corporation Tax Law: exclusions: environmental credits.
What it does
Existing law, the Personal Income Tax Law and 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. Existing federal law authorizes an applicable entity, as defined, to receive a refund for specified environmental credits against the taxes imposed under federal law and excludes a refund payment made pursuant to that law from gross income. Existing federal law also authorizes an eligible taxpayer, as defined, to transfer the value of that refundable credit and exempts from gross income payment received by the transferor as consideration for the transfer.
More detail
Existing federal law prohibits the transferee from deducting the amount paid as consideration for the transfer.
This bill, in conformity with federal law, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would exclude from gross income a refund payment made for the specified federal environmental credits described above and any payment received by a transferor as consideration for a transfer, as provided. The bill would also prohibit a transferee from deducting the amount paid as consideration for the transfer, in conformity with federal law.
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.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Oct 1Chaptered by Secretary of State. Chapter 215, Statutes of 2025.Latest
- Oct 1Approved by the Governor Gavin Newsom.Became Law
- Sep 22Enrolled and presented to the Governor at 11 a.m.To Governor
- Sep 11Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2881.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB302 Padilla et al. Concurrence. Result: pass.Upper
- Sep 10In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 302 Padilla Senate Third Reading By Petrie-Norris. Result: pass.Lower
- Sep 10Read third time. Passed. (Ayes 79. Noes 0. Page 3175.) Ordered to the Senate.Passed Assembly
- Sep 2Read second time. Ordered to third reading.Minor
- Aug 29From committee: Do pass. (Ayes 15. Noes 0.) (August 29).Minor
- Vote recorded Do pass. Result: pass.Lower
- Aug 20August 20 set for first hearing. Placed on APPR. suspense file.
- Jul 17Read second time and amended. Re-referred to Com. on APPR.Major
- Jul 17From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 14).Major
- Jul 17Assembly Rule 63 suspended. (Ayes 49. Noes 15. Page 2578.)
- Jul 15July 14 set for first hearing. Placed on REV. & TAX. suspense file.
- Jul 14
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jul 1June 30 hearing postponed by committee.
- Jun 5Referred to Com. on REV. & TAX.Minor
- May 29In Assembly. Read first time. Held at Desk.Minor
- Vote recorded Special Consent SB302 Padilla et al. Result: pass.Upper
- May 29Read third time. Passed. (Ayes 38. Noes 0. Page 1324.) Ordered to the Assembly.Passed Senate
- May 27Ordered to special consent calendar.
- May 23Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- May 23From committee: Do pass. (Ayes 6. Noes 0. Page 1195.) (May 23).Minor
- May 16Set for hearing May 23.
- Apr 7April 7 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 1Set for hearing April 7.
- Mar 27Read second time and amended. Re-referred to Com. on APPR.Major
- Mar 26From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 568.) (March 26).Major
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Mar 18Set for hearing March 26.
- Feb 19Referred to Com. on REV. & TAX.Minor
- Feb 11From printer. May be acted upon on or after March 13.
- Feb 10Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced