Bill Commons

CA SB 302

enacted

Personal Income Tax Law and Corporation Tax Law: exclusions: environmental credits.

California · 2025-2026 Regular Session · upper

Quick answers

Did CA SB 302 pass?

Yes. CA SB 302 has been enacted into law as of 2025-10-01. Latest recorded action (2025-10-01): Chaptered by Secretary of State. Chapter 215, Statutes of 2025.

What is CA SB 302 about?

Existing law, the Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing federal law authorizes an applicable entity, as defined, to receive a refund for specified environmental credits against the taxes imposed under federal law and excludes a refund payment made pursuant to that law from gross income. Existing federal law also authorizes an eligible taxpayer, as defined, to transfer the value of that refundable credit and exempts from gross income payment received by the transferor as consideration for the transfer. Existing federal law prohibits the transferee from deducting the amount paid as consideration for the transfer. This bill, in conformity with federal law, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would exclude from gross income a refund payment made for the specified federal environmental credits described above and any payment received by a transferor as consideration for a transfer, as provided. The bill would also prohibit a transferee from deducting the amount paid as consideration for the transfer, in conformity with federal law. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

Who sponsors CA SB 302?

Padilla is the primary sponsor of CA SB 302, joined by 5 cosponsors.

Description

Existing law, the Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing federal law authorizes an applicable entity, as defined, to receive a refund for specified environmental credits against the taxes imposed under federal law and excludes a refund payment made pursuant to that law from gross income. Existing federal law also authorizes an eligible taxpayer, as defined, to transfer the value of that refundable credit and exempts from gross income payment received by the transferor as consideration for the transfer. Existing federal law prohibits the transferee from deducting the amount paid as consideration for the transfer. This bill, in conformity with federal law, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would exclude from gross income a refund payment made for the specified federal environmental credits described above and any payment received by a transferor as consideration for a transfer, as provided. The bill would also prohibit a transferee from deducting the amount paid as consideration for the transfer, in conformity with federal law. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

Introduced
2025-02-10
Latest action
2025-10-01 — Chaptered by Secretary of State. Chapter 215, Statutes of 2025.
Bill type
bill
Last updated

Subjects

Sponsors

  • Padillaauthor
  • Allencoauthor
  • Beckercoauthor
  • Sterncoauthor
  • Irwincoauthor
  • Petrie-Norriscoauthor

Committees

Not provided by source.

Action timeline

  1. 2025-02-10

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    introduction,reading-1,referral-committee

  2. 2025-02-11

    From printer. May be acted upon on or after March 13.

  3. 2025-02-19

    Referred to Com. on REV. & TAX.

    referral-committee

  4. 2025-03-18

    Set for hearing March 26.

  5. 2025-03-26

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 568.) (March 26).

    amendment-passage,committee-passage,committee-passage-favorable,referral-committee

  6. 2025-03-27

    Read second time and amended. Re-referred to Com. on APPR.

    amendment-passage,reading-1,reading-2,referral-committee

  7. 2025-04-01

    Set for hearing April 7.

  8. 2025-04-07

    April 7 hearing: Placed on APPR. suspense file.

  9. 2025-05-16

    Set for hearing May 23.

  10. 2025-05-23

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  11. 2025-05-23

    From committee: Do pass. (Ayes 6. Noes 0. Page 1195.) (May 23).

    committee-passage,committee-passage-favorable

  12. 2025-05-27

    Ordered to special consent calendar.

  13. 2025-05-29

    Read third time. Passed. (Ayes 38. Noes 0. Page 1324.) Ordered to the Assembly.

    passage,reading-1,reading-3

  14. 2025-05-29

    In Assembly. Read first time. Held at Desk.

    reading-1

  15. 2025-06-05

    Referred to Com. on REV. & TAX.

    referral-committee

  16. 2025-07-01

    June 30 hearing postponed by committee.

  17. 2025-07-15

    July 14 set for first hearing. Placed on REV. & TAX. suspense file.

  18. 2025-07-17

    Read second time and amended. Re-referred to Com. on APPR.

    amendment-passage,reading-1,reading-2,referral-committee

  19. 2025-07-17

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 14).

    amendment-passage,committee-passage,committee-passage-favorable,referral-committee

  20. 2025-07-17

    Assembly Rule 63 suspended. (Ayes 49. Noes 15. Page 2578.)

  21. 2025-08-20

    August 20 set for first hearing. Placed on APPR. suspense file.

  22. 2025-08-29

    From committee: Do pass. (Ayes 15. Noes 0.) (August 29).

    committee-passage,committee-passage-favorable

  23. 2025-09-02

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  24. 2025-09-10

    Read third time. Passed. (Ayes 79. Noes 0. Page 3175.) Ordered to the Senate.

    passage,reading-1,reading-3

  25. 2025-09-10

    In Senate. Concurrence in Assembly amendments pending.

  26. 2025-09-11

    Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2881.) Ordered to engrossing and enrolling.

    amendment-passage,committee-passage,committee-passage-favorable

  27. 2025-09-22

    Enrolled and presented to the Governor at 11 a.m.

    executive-receipt

  28. 2025-10-01

    Approved by the Governor.

    executive-signature

  29. 2025-10-01

    Chaptered by Secretary of State. Chapter 215, Statutes of 2025.

    became-law

Versions

  • 02/10/25 - Introduced — 2025-02-10Compare
  • 03/27/25 - Amended Senate — 2025-03-27Compare
  • 07/17/25 - Amended Assembly — 2025-07-17Compare
  • 09/13/25 - Enrolled — 2025-09-13Compare
  • 10/01/25 - Chaptered — 2025-10-01Compare
  • SB302Compare
  • (document, no version)Compare

Documents

Votes

  • Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]

    2025-03-26 · pass · 5-0

    Member-level votes (5)
    • Ashby: yes
    • Grayson: yes
    • McNerney: yes
    • Umberg: yes
    • Valladares: yes
  • Placed on suspense file

    2025-04-07 · pass · 7-0

    Member-level votes (7)
    • Richardson: yes
    • Cabaldon: yes
    • Grayson: yes
    • Caballero: yes
    • Seyarto: yes
    • Wahab: yes
    • Dahle: yes
  • Do pass

    2025-05-23 · pass · 6-0

    Member-level votes (7)
    • Caballero: yes
    • Seyarto: yes
    • Wahab: yes
    • Cabaldon: yes
    • Richardson: yes
    • Grayson: yes
    • Dahle: other
  • Special Consent SB302 Padilla et al.

    2025-05-29 · pass · 38-0

    Member-level votes (40)
    • Smallwood-Cuevas: yes
    • Grayson: yes
    • Grove: yes
    • Dahle: yes
    • Rubio: yes
    • Jones: yes
    • Umberg: yes
    • Weber Pierson: yes
    • Wiener: yes
    • Stern: yes
    • Padilla: yes
    • Arreguín: yes
    • Caballero: yes
    • Pérez: yes
    • McNerney: yes
    • Gonzalez: yes
    • Durazo: yes
    • Cortese: yes
    • Archuleta: yes
    • Blakespear: yes
    • Laird: yes
    • Strickland: yes
    • Choi: yes
    • Valladares: yes
    • McGuire: yes
    • Niello: yes
    • Allen: yes
    • Richardson: yes
    • Hurtado: yes
    • Cervantes: yes
    • Seyarto: yes
    • Menjivar: yes
    • Wahab: yes
    • Becker: yes
    • Alvarado-Gil: yes
    • Ochoa Bogh: yes
    • Ashby: yes
    • Cabaldon: yes
    • Limón: other
    • Reyes: other
  • Do pass as amended and be re-referred to the Committee on [Appropriations]

    2025-07-14 · pass · 7-0

    Member-level votes (7)
    • Gipson: yes
    • McKinnor: yes
    • Ta: yes
    • Quirk-Silva: yes
    • Bains: yes
    • DeMaio: yes
    • Carrillo: yes
  • Do pass.

    2025-08-29 · pass · 15-0

    Member-level votes (15)
    • Ta: yes
    • Elhawary: yes
    • Pellerin: yes
    • Fong: yes
    • Pacheco: yes
    • Tangipa: yes
    • Calderon: yes
    • Arambula: yes
    • Dixon: yes
    • Mark González: yes
    • Sanchez: yes
    • Wicks: yes
    • Caloza: yes
    • Ahrens: yes
    • Solache: yes
  • SB 302 Padilla Senate Third Reading By Petrie-Norris

    2025-09-10 · pass · 79-0

    Member-level votes (80)
    • Addis: yes
    • Haney: yes
    • Elhawary: yes
    • Carrillo: yes
    • Ransom: yes
    • Berman: yes
    • Bauer-Kahan: yes
    • Schiavo: yes
    • Alvarez: yes
    • Caloza: yes
    • Hoover: yes
    • Nguyen: yes
    • Ortega: yes
    • Solache: yes
    • Lowenthal: yes
    • Petrie-Norris: yes
    • Gabriel: yes
    • Zbur: yes
    • DeMaio: yes
    • Hadwick: yes
    • Irwin: yes
    • Patel: yes
    • Kalra: yes
    • Sanchez: yes
    • Johnson: yes
    • Mark González: yes
    • Gipson: yes
    • Hart: yes
    • Calderon: yes
    • Wilson: yes
    • Soria: yes
    • Valencia: yes
    • Celeste Rodriguez: yes
    • Connolly: yes
    • Papan: yes
    • Bonta: yes
    • Jeff Gonzalez: yes
    • Alanis: yes
    • Patterson: yes
    • Jackson: yes
    • Davies: yes
    • Pellerin: yes
    • Muratsuchi: yes
    • Krell: yes
    • Chen: yes
    • Quirk-Silva: yes
    • Bains: yes
    • Michelle Rodriguez: yes
    • Arambula: yes
    • Bennett: yes
    • Ávila Farías: yes
    • Aguiar-Curry: yes
    • Lee: yes
    • Castillo: yes
    • Wallis: yes
    • Stefani: yes
    • Ta: yes
    • Blanca Rubio: yes
    • Gallagher: yes
    • Ellis: yes
    • Macedo: yes
    • McKinnor: yes
    • Ramos: yes
    • Rivas: yes
    • Ahrens: yes
    • Dixon: yes
    • Rogers: yes
    • Ward: yes
    • Fong: yes
    • Wicks: yes
    • Schultz: yes
    • Pacheco: yes
    • Boerner: yes
    • Sharp-Collins: yes
    • Bryan: yes
    • Harabedian: yes
    • Lackey: yes
    • Flora: yes
    • Garcia: yes
    • Tangipa: other
  • Unfinished Business SB302 Padilla et al. Concurrence

    2025-09-11 · pass · 40-0

    Member-level votes (40)
    • Valladares: yes
    • Umberg: yes
    • McGuire: yes
    • Ochoa Bogh: yes
    • Pérez: yes
    • Cabaldon: yes
    • Wiener: yes
    • Jones: yes
    • Reyes: yes
    • McNerney: yes
    • Dahle: yes
    • Cervantes: yes
    • Caballero: yes
    • Menjivar: yes
    • Allen: yes
    • Archuleta: yes
    • Limón: yes
    • Durazo: yes
    • Niello: yes
    • Richardson: yes
    • Hurtado: yes
    • Blakespear: yes
    • Seyarto: yes
    • Gonzalez: yes
    • Ashby: yes
    • Padilla: yes
    • Choi: yes
    • Laird: yes
    • Stern: yes
    • Alvarado-Gil: yes
    • Grayson: yes
    • Rubio: yes
    • Cortese: yes
    • Smallwood-Cuevas: yes
    • Grove: yes
    • Strickland: yes
    • Becker: yes
    • Weber Pierson: yes
    • Arreguín: yes
    • Wahab: yes

Related bills

No related bills recorded for this bill.

Official source

Attribution

Data from openstates_bulk_csv, retrieved 2026-07-24T01:34:27.960412Z

Inspect retained evidence for changes recorded after evidence tracking began:

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