AB 702: Personal income tax: exclusions: interest income: theft.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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, in modified conformity with federal income tax law, allows a deduction for specified investment interest, not to exceed the net investment income of the taxpayer for the taxable year, as provided.

This bill, for taxable years beginning on or after January 1, 2026, would provide an exclusion from gross income for any amount of interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayer’s consent and against the qualified taxpayer’s will, is stolen, sold, or otherwise transferred, as specified.

This bill would take effect immediately as a tax levy.

Sponsors

Sponsors by party (alphabetical): Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. January 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. April 21, 2025In committee: Set, first hearing. Hearing canceled at the request of author.
4. March 24, 2025In committee: Hearing postponed by committee.
5. March 3, 2025Referred to Com. on REV. & TAX.
6. February 15, 2025From printer. May be heard in committee March 17.
7. February 14, 2025Read first time. To print.