Another Tax Conformity Bill Eyed in 2026

The California legislature passed last week its first tax conformity bill in 10 years, a gargantuan measure that includes more than 1,000 changes to address diversions between the state’s tax code and the federal government’s. But there’s not much time to bask in the glow of that win.

The conformity bill (S.B. 711) sitting on Gov. Gavin Newsom’s desk only addresses discrepancies for tax changes enacted from 2015 through 2024. That means big swings like President Donald Trump’s 2025 mega-tax law aren’t accounted for — and that lawmakers will face an already large backlog of diversions when they return ...