Budget & Economy

Extends indefinitely the tax provisions allowing nonresident aliens to file without SSN or ITIN numbers. Maintains the group tax filing option for nonresident aliens receiving California income. Excludes from gross income any payments made by agents for nonresidents in group filings. Requires the highest marginal tax rate plus 1% for nonresident aliens filing group returns.

Extends the deadline for filing solar energy system tax exclusions to three years after property purchase. Adds public schools to organizations eligible for property tax exemptions and refunds. Allows late-filed solar energy system claims to receive tax benefits starting in the year filed. Requires state reimbursement to local agencies for costs of implementing new tax provisions.

Updates required contact information for consumer complaints at money transmission locations. Requires notices in English and the primary language used by the business for advertising. Allows alternative notice formats for money transmission services on websites and mobile apps. Removes an outdated reporting requirement for deferred deposit transactions.

Expands property tax deferral eligibility during disasters to include taxpayers who have applied for payment plans. Allows a one-year deferral of property tax payments for properties damaged in state-declared disasters. Requires taxpayers to file deferral applications by September 1 of the following fiscal year. Maintains interest charges on deferred tax payments which must be paid with the delayed installment.

Increases California's film tax credit program from $330 million to $750 million annually through 2030. Raises tax credit rates from 20-25% to 35-40% of qualified production expenses starting January 2025. Expands eligibility to include animated series, films and competition shows with $1 million minimum budgets. Requires productions to meet diversity goals and hire trainees from underserved communities to receive full credits.

Approves a new labor agreement for State Bargaining Unit 6 employees effective July 2025 through July 2028. Requires state employees in Unit 6 to take a 3% pay cut in exchange for 5 hours of monthly leave from 2025-2027. Suspends employer contributions to retiree healthcare prefunding for fiscal years 2025-26 and 2026-27. Reduces the 2025 Budget Act by $120.2 million to reflect savings from the new agreement.

Approves labor agreements between the state and Bargaining Units 9 and 12 through June 2028 and 2027 respectively. Implements a new Personal Leave Program reducing employee pay by 3% in exchange for 5 monthly leave hours. Suspends employer contributions to retiree healthcare prefunding for fiscal years 2025-26 and 2026-27. Reduces state budget appropriations by $88.7 million across various funds in accordance with labor agreements.

Amends multiple budget acts from 2022-2024 to reallocate funds and establish new appropriations across state programs. Provides $802 million to the State Air Resources Board for mobile source emissions reduction and climate change initiatives. Allocates over $5.4 billion for special education programs and services for exceptional children through 2024-25. Establishes a $1.5 billion emergency fund for wildfire response and recovery efforts in areas affected by 2025 fires.

Requires trial courts to submit detailed annual reports on operations and budgets by February 1 each year. Authorizes the Judicial Council to sell three specific courthouse properties at fair market value. Allows loans up to $150 million between judicial funds to support trial court operations. Appropriates $4.69 million from the General Fund for court facilities construction.

Increases the film and television production tax credit from $330 million to $750 million annually starting in 2025. Excludes up to $20,000 in military retirement pay and survivor benefits from state income tax through 2030. Exempts wildfire settlement payments and Chiquita Canyon landfill compensation from state income tax calculations. Requires out-of-state firearm retailers to collect California excise tax on sales to state residents.

Modifies state payment deadlines to align with peak fire staffing periods rather than fixed fire seasons. Extends payment due dates by 30 days for contractors during peak fire protection periods. Suspends late payment penalties during disasters except for small businesses and nonprofits. Exempts nonprofit corporations from late payment penalties when no state budget is enacted.

Authorizes special lane access for Olympic and Paralympic Games vehicles on California highways through 2028. Delays implementation of driver's license suspension penalties for street racing violations until January 2029. Establishes a $1 DMV transaction fee for system improvements through December 2028. Appropriates funds up to $20 million for transportation projects supporting the 2028 Olympic Games.

Simplifies mortgage financing requirements by allowing more flexible options for recording debtor names. Permits use of either full legal name or surname with first name on mortgage financing documents. Eliminates the requirement to match DMV identification card names exactly on financing statements.

Modernizes local tax measure ballots by allowing tax details to be moved from ballots to voter guides. Requires detailed measure information statements to be mailed or sent electronically to voters 88 days before elections. Authorizes electronic transmission of tax measure information to voters who opt for digital communications. Mandates clear descriptions of tax purposes, rates, and durations in voter information materials.

Extends local agencies' ability to invest up to 40% in commercial paper until January 2031. Requires local agencies to file financial reports within 10 months of fiscal year end. Establishes tiered penalties up to $5,000 for late financial report submissions based on agency revenue.

Excludes wildfire settlement payments from taxable income for victims of the 2021 Dixie Fire and 2022 Mill Fire. Applies to property owners, residents, and businesses in six affected California counties through 2026. Requires PG&E and Roseburg Forest Products to document all settlement payments to tax authorities. Takes effect immediately to provide urgent financial relief to wildfire victims.

Excludes settlement payments received from Southern California Edison for the 2020 Bobcat Fire from state taxable income for Los Angeles County residents, property owners, and businesses. Applies to tax years 2024 through 2028, with provisions automatically expiring on December 1, 2029. Requires Southern California Edison to provide settlement payment documentation to the Franchise Tax Board upon request. Takes effect immediately as an urgency measure to provide rapid financial relief to fire victims.

Expands film tax credit data collection to track diversity metrics and local workforce impacts in California. Requires film productions to report employee demographics including disability, veteran, and LGBTQ+ status. Mandates annual public reports on diversity trends and economic impacts in the film industry. Creates apprenticeship tracking for underrepresented groups without adding new penalties.

Establishes a new California-Ireland Trade Commission to advance bilateral trade and investment opportunities. Creates a seven-member advisory commission with representatives from government, academia, and trade organizations. Requires annual reports to the Governor and Legislature on trade initiatives through February 2030. Mandates the commission to promote business and academic exchanges between California and Ireland.

Extends property tax relief deadlines by 3 years for properties damaged by specific 2024-2025 California wildfires. Allows property owners 24 months instead of 12 months to apply for disaster-related property tax reassessments. Maintains tax exemptions for disabled veterans whose homes were destroyed by declared disasters. Preserves property tax exemptions through 2033 for qualifying properties damaged by specified wildfires.

Extends the property tax relief application period by 3 years for victims of specific 2025 California fire disasters. Allows property owners 8 years to rebuild while maintaining their original property tax base value. Requires tax assessors to factor in disaster-related property value reductions for the 2025-26 tax year. Takes effect immediately to provide urgent tax relief for fire-damaged properties in six affected areas.

Establishes the California Community Reinvestment Act requiring banks to serve low-income communities. Requires financial institutions to undergo community service assessments every three years. Creates a rating system from Outstanding to Substantial Noncompliance for bank performance. Prohibits poorly-rated institutions from receiving state funds or contracts.

Strengthens metal theft laws by creating new penalties for organized theft rings and increasing fines up to $10,000. Requires junk dealers to record detailed transaction information including time, amount paid, and employee names. Expands list of protected items to include street lights, traffic signals, and utility infrastructure. Establishes felony charges for coordinated metal theft operations involving multiple people.

Excludes charitable remainder trusts from incomplete gift nongrantor trust tax requirements. Requires 90% of qualifying trust income to be distributed to charitable organizations. Grants the Franchise Tax Board authority to establish implementation regulations.

Extends the state's authority to collect local taxes on prepaid mobile phone services until January 1, 2031. Maintains centralized collection of local mobile phone taxes through the state tax department. Preserves consumers' right to dispute charges by filing claims under penalty of perjury.