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Bills

SB 573: Personal Income Tax Law: exclusions: guaranteed income pilot programs.

  • Session Year: 2025-2026
  • House: Senate

Current Status:

In Progress

(2025-04-02: From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.)

Introduced

First Committee Review

First Chamber

Second Committee Review

Second Chamber

Enacted

Version:

The Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, and provides various exclusions from gross income, including, until July 1, 2026, an exclusion for payments received from a guaranteed income pilot program or related grants, as specified. Existing law repeals this exclusion as of January 1, 2027.

This bill would extend the above-referenced exclusion from gross income until July 1, 2031, and would repeal it as of January 1, 2032.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill also would include additional information required for any bill authorizing a new tax expenditure.

This bill would take effect immediately as a tax levy.

The Corporation Tax Law imposes taxes according to or measured by net income at a rate of 8.84%, or for financial institutions, at a rate of 10.84%, as specified.This bill, for taxable years beginning on and after January 1, 2026, would revise that rate for taxpayers that are publicly held corporations, as defined, and instead impose an applicable tax rate from 7% to 13%, or for financial institutions, from 9% to 15%, based on the compensation ratio, as defined, of the corporation. This bill would increase the applicable tax rate by 50% for those taxpayers that have a specified decrease in full-time employees employed in the United States as compared to an increase in contracted and foreign full-time employees, as described.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.This bill would take effect immediately as a tax levy.

News Coverage:

SB 573: Personal Income Tax Law: exclusions: guaranteed income pilot programs. | Digital Democracy