CSTC works closely with a Legislative Consultant to keep an eye on important bills that would affect taxpayers and small business owners. Looking forward, January is the beginning of a two-year legislative session, which may be a busy session as many of the bills that did not pass this year could be re-introduced in 2021

Click here to find your California Representative

AB 1577 (Burke) Income taxes: federal CARES Act: gross income: loan forgiveness
Conforms state law to federal law to allow taxpayers to exclude the amount of Paycheck Protection Program loans provided to CARES Act for state tax purposes, and denies the business expense deduction for those expenses that were paid for using forgiven loan funds.
Status: Signed into law, takes effect immediately
More here: PPP loans are not taxable income under CDA-supported bill signed by governor 

AB 2013 (Irwin) Property taxation: new construction: definition
Related to the property tax, provides disaster relief parity between property owners following a Governor- declared disaster by establishing the same comparability definition for replacement property for owners who rebuild onsite and owners who purchase another property.
Status: Signed into law, takes effect on January 1, 2020 

AB 2247 (Burke). Personal income taxes: dependent exemption credit: identifying information.
This bill allows certain nonresident alien dependents to be claimed on a California tax return by providing alternative information.
Status: Signed into law, takes effect on January 1, 2020 

AB 2660 (Burke). Income taxes: administration: nonresident aliens: identifying numbers: group filing.
This bill allows certain nonresident taxpayers to file a group return if they receive taxable income for services that take place in this state.
Status: Signed into law, takes effect on January 1, 2020 

AB 3372 (Committee on Revenue and Taxation). Taxation: administration: earnings withholding: water’s edge elections
A bill making technical changes, AB 3372 allows the Franchise Tax Board to serve wage garnishments electronically and maintain an otherwise valid water’s-edge election when a unitary foreign affiliate becomes a taxpayer solely due to the change in California’s “doing business” statute.
Status: Signed into law, takes effect on January 1, 2020