In general, California income tax law is based on federal income tax law. Usually, this is accomplished by conforming to specific provisions of the Internal Revenue Code (IRC) by reference as of a "specified date", which is currently January 1, 2005. However, not all provisions of the IRC are applicable for California purposes. In addition, not all federal changes to a particular provision are applicable for California purposes for the same period and to the same extent the change is applicable for federal purposes. This Website will provide information on recently enacted federal laws that affect California tax law as well as information on recent California legislative bills as they pertain to federal conformity.
For information on 2007 legislation regarding California conformity to federal law, go to 2007 Conformity. For links to California codes and legislation information go to our Website at www.ftb.ca.gov and search for Law.
For information on specific federal acts or California legislation, see the links below.
Federal Acts
Small Business and Work Opportunity Tax Act of 2007 – (Subtitle B of TITLE VIII of Federal P.L. 110-28) – Enacted into law on May 25, 2007 and is generally effective for taxable years after the date of enactment. This act affects provisions from the Gulf Opportunity Zone Tax Incentives, Subchapter S provisions, other general and revenue provisions.
- FTB Analysis of Small Business and Work Opportunity Tax Act of 2007 – (Subtitle B of TITLE VIII of Federal P.L. 110-28)
California Bill
AB 1561 (Amended 06/14/07) – This bill changes California's specified date of conformity to federal income tax laws from January 1, 2005 to January 1, 2007. The following analysis will provide guidance as to the conformity to federal laws enacted over this two-year period.
- Bill Analysis – Amended 06/14/07
- Bill Analysis – Amended 04/10/07
Comments
Send us your comments or questions regarding current year federal conformity or improvements to this Website. This Website is not intended for prior year conformity questions, legal advice or rulings, or individual taxpayer's request.
Yearly reports of federal changes
We provide an annual report (Summary of Federal Income Tax Changes) to the Legislature on or before January 10th of each year (unless federal changes are enacted late in the year) concerning changes to federal tax law occurring during the previous calendar year and the effect of those changes on California law. See below for the Summary of Federal Income Tax Changes.