SB 711: Taxation: federal conformity.

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, 2015, the specified date of those referenced Internal Revenue Code sections is January 1, 2015, unless otherwise specifically provided. Existing law requires, for any introduced bill that proposes changes in any of those dates, that the Franchise Tax Board prepare a complete analysis of the bill that describes all changes to state law that will automatically occur by reference to federal law as of the changed date. It further requires the Franchise Tax Board to immediately update and supplement that analysis upon any amendment to the bill, and requires that analysis be made available to the public and be submitted to the Legislature for publication in the daily journal of each house of the Legislature.

This bill would change the specified date of those referenced Internal Revenue Code sections to January 1, 2025, for taxable years beginning on or after January 1, 2025, and thereby would make numerous substantive changes to both the Personal Income Tax Law and the Corporation Tax Law with respect to those areas of preexisting conformity that are subject to changes under federal laws enacted after January 1, 2015, and that have not been, or are not being, excepted or modified. This bill would make certain other changes in federal income tax laws applicable, with specified exceptions and modifications, and make specified supplemental, technical, or clarifying changes for purposes of the Personal Income Tax Law or the Corporation Tax Law, or both, or the administration of those laws, with respect to, among other things, tax credits, deductions, net operating losses, Roth IRAs, and capital assets.

This bill would also repeal obsolete provisions.

This bill would declare that it is to take effect immediately as an urgency statute.

Sponsors

Sponsors by party (alphabetical): Democratic 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. October 1, 2025Chaptered by Secretary of State. Chapter 231, Statutes of 2025.
2. October 1, 2025Approved by the Governor.
3. September 22, 2025Enrolled and presented to the Governor at 11 a.m.
4. September 11, 2025Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2875.) Ordered to engrossing and enrolling.
5. September 9, 2025In Senate. Concurrence in Assembly amendments pending.
6. September 9, 2025Read third time. Urgency clause adopted. Passed. (Ayes 58. Noes 1. Page 3130.) Ordered to the Senate.
7. September 3, 2025Read second time. Ordered to third reading.
8. September 2, 2025Read second time and amended. Ordered to second reading.
9. August 29, 2025From committee: Do pass as amended. (Ayes 11. Noes 1.) (August 29).
10. August 20, 2025August 20 set for first hearing. Placed on APPR. suspense file.
11. July 15, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (July 14). Re-referred to Com. on APPR.
12. July 15, 2025July 14 set for first hearing. Placed on REV. & TAX. suspense file.