Taxation trailer bill.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill, known as a ‘taxation trailer bill,’ makes adjustments to several state tax laws. It increases the amount available for property tax postponements for manufactured homes, extends the duration of the CalCompetes tax credit for businesses, and conforms California’s tax laws to recent federal tax changes enacted in the Consolidated Appropriations Act, 2023. Specifically, it aligns California’s tax rules with provisions related to 530A investment accounts and employer contributions to those accounts, as well as adjustments to the franchise tax for limited liability companies.
Key provisions
- Increases the amount available for manufactured home property tax postponements from the Senior Citizens and Disabled Citizens Property Tax Postponement Fund to $300,000 annually.
- Extends the CalCompetes tax credit through taxable years ending before January 1, 2035.
- Conforms California’s tax laws to recent federal tax changes, including those related to 530A investment accounts.
- Reduces the annual franchise tax for limited liability companies to $400 for their first taxable year beginning on or after January 1, 2027.
- Updates provisions related to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund, including transfer amounts to the General Fund.
- Modifies the calculation of the California Competes Tax Credit based on factors like job creation, investment, and unemployment rates.
- Includes provisions to conform to federal law regarding qualified ABLE accounts.
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Committee on Budget and Fiscal Review
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