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SB-711 • 2026

Taxation: federal conformity.

Taxation: federal conformity.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
McNerney
Last action
2025-10-01
Official status
Chaptered by Secretary of State. Chapter 231, Statutes of 2025.
Effective date
Not listed

Plain English Breakdown

The bill summary and digest do not specify all exact changes to state tax laws, leaving some uncertainty about which specific federal tax law changes it will affect.

Tax Rules Follow Federal Changes

The bill updates California's tax laws to match changes in federal tax laws made after January 1, 2015, starting from January 1, 2025.

What This Bill Does

  • Updates the date when California follows federal tax rules to January 1, 2025.
  • Changes state tax laws based on new federal tax laws made after January 1, 2015.
  • Includes changes related to tax credits, deductions, net operating losses, Roth IRAs, and capital assets.
  • Removes old parts of the law that are no longer needed.

Who It Names or Affects

  • People who pay personal income taxes in California.
  • Companies that pay corporation taxes in California.

Terms To Know

Tax Credits
Money a person or business can subtract from the total amount of tax they owe.
Net Operating Losses
When a company's expenses are more than its income, leading to a loss that can be used to reduce future taxes.

Limits and Unknowns

  • The bill does not specify all the exact changes it will make to state tax laws.
  • It is unclear which specific federal tax law changes this update will affect.

Bill History

  1. 2025-10-01 California Legislative Information

    Chaptered by Secretary of State. Chapter 231, Statutes of 2025.

  2. 2025-10-01 California Legislative Information

    Approved by the Governor.

  3. 2025-09-22 California Legislative Information

    Enrolled and presented to the Governor at 11 a.m.

  4. 2025-09-11 California Legislative Information

    Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2875.) Ordered to engrossing and enrolling.

  5. 2025-09-09 California Legislative Information

    In Senate. Concurrence in Assembly amendments pending.

  6. 2025-09-09 California Legislative Information

    Read third time. Urgency clause adopted. Passed. (Ayes 58. Noes 1. Page 3130.) Ordered to the Senate.

  7. 2025-09-03 California Legislative Information

    Read second time. Ordered to third reading.

  8. 2025-09-02 California Legislative Information

    Read second time and amended. Ordered to second reading.

  9. 2025-08-29 California Legislative Information

    From committee: Do pass as amended. (Ayes 11. Noes 1.) (August 29).

  10. 2025-08-20 California Legislative Information

    August 20 set for first hearing. Placed on APPR. suspense file.

  11. 2025-07-15 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (July 14). Re-referred to Com. on APPR.

  12. 2025-07-15 California Legislative Information

    July 14 set for first hearing. Placed on REV. & TAX. suspense file.

  13. 2025-07-07 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

  14. 2025-06-05 California Legislative Information

    Referred to Com. on REV. & TAX.

  15. 2025-05-28 California Legislative Information

    In Assembly. Read first time. Held at Desk.

  16. 2025-05-28 California Legislative Information

    Read third time. Urgency clause adopted. Passed. (Ayes 38. Noes 0. Page 1304.) Ordered to the Assembly.

  17. 2025-05-23 California Legislative Information

    Read second time. Ordered to third reading.

  18. 2025-05-23 California Legislative Information

    From committee: Do pass. (Ayes 6. Noes 0. Page 1210.) (May 23).

  19. 2025-05-16 California Legislative Information

    Set for hearing May 23.

  20. 2025-05-12 California Legislative Information

    May 12 hearing: Placed on APPR. suspense file.

  21. 2025-05-02 California Legislative Information

    Set for hearing May 12.

  22. 2025-04-29 California Legislative Information

    Read second time and amended. Re-referred to Com. on APPR.

  23. 2025-04-28 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 0. Page 873.) (April 23).

  24. 2025-04-04 California Legislative Information

    Set for hearing April 23.

  25. 2025-04-02 California Legislative Information

    Re-referred to Com. on REV. & TAX.

  26. 2025-03-26 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  27. 2025-03-12 California Legislative Information

    Referred to Com. on RLS.

  28. 2025-02-24 California Legislative Information

    Read first time.

  29. 2025-02-24 California Legislative Information

    From printer. May be acted upon on or after March 24.

  30. 2025-02-21 California Legislative Information

    Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 711, McNerney.
Taxation: federal conformity.
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.

Current Bill Text

Read the full stored bill text 
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