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California · 2025–26 Regular Session · Senate Bill

SB 1435: Personal Income Tax Law and Corporation Tax Law: federal conformity.

Enacted Official data

  1. Introduced
  2. In committee
  3. Passed one chamber
  4. Passed both chambers
  5. Enacted

Last official action: ·Record last updated:

Plain-language summary

SB 1435 is a senate bill introduced in the California Senate on March 11, 2026. According to its official title, it concerns: Personal Income Tax Law and Corporation Tax Law: federal conformity. Primary sponsor: Committee on Revenue and Taxation. Most recent recorded action (September 14, 2026): Chaptered by Secretary of State. Chapter 236, Statutes of 2026.

Generated automatically from the official title, sponsor list, and status record only. It does not characterize the bill’s purpose or effects. How summaries are written

Official summary

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

Under the Personal Income Tax Law and the Corporation Tax Law, various provisions of the federal Internal Revenue Code, as enacted as of a specified date, are referenced in various sections of the Revenue and Taxation Code. Those laws provide that, for taxable years beginning on or after January 1, 2025, the specified date of those referenced Internal Revenue Code sections is January 1, 2025, unless otherwise specifically provided.

This bill would further update various references to the Internal Revenue Code for the purposes of the Personal Income Tax Law and the Corporation Tax Law, including by deleting outdated references to repealed provisions of federal income tax laws and updating references to the Internal Revenue Code to reduce confusion.

The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, provide a deduction from income for interest paid on indebtedness incurred in the ordinary course of a trade or business. Existing federal income tax law establishes a limit on the amount of interest that can be deducted based in part on the taxpayer’s adjusted taxable income, as defined. Existing law specifically does not conform to this limitation on deduction of business interest for purposes of the Corporation Tax Law.

This bill would, for taxable years beginning on or after January 1, 2025, provide that the limit on deductibility for business interest under federal income tax law does not apply for purposes of the Personal Income Tax Law.

This bill would take effect immediately as a tax levy.

Sponsors

NameRolePartyChamberDistrict
Committee on Revenue and TaxationPrimary sponsorNot applicable (committee)Senate—

“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. Chaptered by Secretary of State. Chapter 236, Statutes of 2026.
  2. Chaptered by Secretary of State. Chapter 236, Statutes of 2026.
  3. Approved by the Governor.
  4. Approved by the Governor.
  5. Enrolled and presented to the Governor at 2 p.m.
  6. Enrolled and presented to the Governor at 2 p.m.
  7. Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5988.) Ordered to engrossing and enrolling.
  8. Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling.
  9. Ordered to special consent calendar.
  10. Ordered to special consent calendar.
  11. In Senate. Concurrence in Assembly amendments pending.
  12. In Senate. Concurrence in Assembly amendments pending.

Sources

  1. California Legislative Information — pubinfo database export
  2. Official bill page