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. The information below identifies recently enacted
federal laws that affect California tax law and information on recent
California legislative bills as they pertain to federal conformity.
For links to California codes and other legislation
information, type law in our search field above.
2008 Conformity
On or before January 10 of each year (unless federal changes are enacted late in the year), we provide an annual report (Summary of Federal Income Tax Changes) to the Legislature concerning changes to federal tax law occurring during the previous calendar year and the effect of those changes on California law. See the 2008 Summary of Federal Income Tax Changes.
Federal Acts
- Economic Stimulus Act of 2008 (PL 110-185, H.R. 5140) enacted February 13, 2008. This provides economic stimulus through recovery rebates to individuals, incentives for business investment, and an increase in the maximum amounts of mortgage loans issued by Fannie Mae and Freddie Mac.
- Food, Conservation, and Energy Act of 2008 (PL 110-234, H.R. 2419 and reenacted by PL 110-246, HR 6124) enacted May 22, 2008. This act runs from 2008 through 2012 and reauthorizes most programs of the 2002 farm bill.
- Heroes Earnings Assistance and Relief Tax Act of 2008 (PL 110-245, H.R. 6081) enacted June 17, 2008. This amends the IRC to provide tax benefits and incentives for military personnel.
- Housing and Economic Recovery Act of 2008 (PL 110-289, H.R. 3221) enacted July 30, 2008. This provides four important tax law changes that impact individuals and small businesses. The changes are (1) tax credit of up to $7,500 for first-time homebuyers, to be repaid over 15 years; (2) property tax deduction for people who don't itemize; (3) reporting of credit card and merchant payments to the IRS; and (4) prorated capital gains exclusion for real estate for periods of nonprimary use.
- Emergency Economic Stabilization Act of 2008 (PL 110-343 H.R. 1424) enacted October 3, 2008. This act is intended to restore liquidity and stability to the financial system of the United States.
- The Worker, Retiree, and Employer Recovery Act of 2008 ( H.R. 7327) enacted December 23, 2008. The act suspends the requirement to make annual minimum distributions from retirement plan accounts in 2009. The act provides pension funding relief for both single employer and multiple employer plans.
Conformity Archive
Go to our conformity archive to view the Summary of Federal Income Tax Changes for previous years.
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 requests.