California Amends State Tax Code for Federal Income Tax Conformity

The California Governor signed a law amending numerous sections of the Revenue and Taxation Code to conform with federal income tax changes. The law: 1) changes the reference date for federal tax law conformity to Jan. 1, 2025; and 2) addresses numerous provisions related to federal tax conformity, including treatment of research expenditures, business interest limitations, tax credits, deductions, net operating losses, Roth IRAs, and capital assets. This law takes effect immediately. [S.B. 711, enacted 10/01/25]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.