Governor Newsom has signed the following legislation.
SB 180 (Ch. 26-85):
- Conforms to the federal tax treatment of Trump Accounts, retroactive to the beginning of the 2026 tax year. This means earnings on the account are not taxable until distributed. California will also conform to the IRC §128 exclusion of employer contributions to Trump Accounts and the exclusion from a beneficiary’s gross income of qualified contributions from a governmental entity or charitable organization; and
- Extends the California Competes Tax Credit for an additional five years, through the 2034 tax year. The credit, which is administered through the California GO-Biz office and awarded on a competitive basis, provides financial incentives to attract and retain private companies that agree to hire and invest in California.
SB 168 (Ch. 26-81) funds a new $3,500 instant rebate through the MyFirst EV program for any Californian who is purchasing their first electric vehicle from a dealer. The rebate is funded 50% by California and 50% by participating automakers. The total rebate is equal to $3,500 for new EVs with an MSRP of up to $50,000 and $1,750 for used vehicles sold for up to $25,000. According to the Governor’s office the rebate will be available later this summer. We assume the rebate will only be available prospectively but are awaiting additional details.
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