Corporations Tax Law: water’s-edge election: global intangible low-taxed income.

Legislative status

1. Introduced
2. In Committee
3. Reported by Committee
4. Floor Vote Scheduled
5. Passed One Chamber
6. Passed Both Chambers
7. Sent to Executive
8. Signed into Law

Summary

The bill amends the Corporations Tax Law so that any company that elects to report on a water‑edge basis must now account for net income from controlled foreign corporations (CFCs) as part of its California combined return. It sets detailed rules for making, continuing, and terminating the election, limits the election after 2028, and gives the Franchise Tax Board authority to issue regulations. The change targets multinational corporations and aims to prevent profit shifting out of California.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

Vote

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 2.) (April 27). · Apr 28, 2026

Hearings

• Appropriations Committee Hearing
  Appropriations · May 14, 2026
• Appropriations Committee Hearing
  Appropriations · May 13, 2026
• Revenue and Taxation Committee Hearing
  Revenue and Taxation · Apr 27, 2026

History

1. May 14, 2026Joint Rule 62(a), file notice suspended. (Page 5030.)
2. May 14, 2026In committee: Hearing postponed by committee.
3. May 14, 2026Coauthors revised.
4. May 13, 2026In committee: Set, first hearing. Referred to APPR. suspense file.
5. Apr 30, 2026Re-referred to Com. on APPR.
6. Apr 29, 2026Read second time and amended.
7. Apr 28, 2026From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 2.) (April 27).
8. Apr 27, 2026In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
9. Feb 23, 2026Referred to Com. on REV. & TAX.
10. Feb 11, 2026From printer. May be heard in committee March 13.
11. Feb 10, 2026Read first time. To print.

Sponsors

• Damon Connolly (D) · sponsor
• : Rogers
• Addis
• Bonta
• Bryan
• Connolly
• Elhawary
• Garcia
• Gonzalez
• Haney
• Harabedian
• Jackson
• Kalra
• Lee
• Mark González
• McKinnor
• Ortega
• Pellerin
• Schultz
• Zbur

Bill text

Opens the legislature’s own copy.

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