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CaliforniaSB 3022025-2026 Regular SessionSenateWALLET

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

Sponsored By: Stephen Padilla (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Energy credit cash untaxed, no purchase write-off

For tax years starting 2026 through 2030, California does not tax cash you get from federal clean energy credits. This covers elective payments under section 6417 and money or credit value from transfers under section 6418. The value of a transferred credit you receive counts as a payment and is not income. But you cannot deduct what you pay to buy a transferred credit. These rules end on December 1, 2031.

Corporate credit cash untaxed, no purchase write-off

For tax years starting 2026 through 2030, corporations exclude from California income cash from federal clean energy credits. This covers elective payments under section 6417 and money or credit value from transfers under section 6418. The value of a transferred credit received counts as a payment and is not income. But amounts paid to buy a transferred credit are not deductible. These rules end on December 1, 2031.

Sponsors & Cosponsors

Sponsor

  • Stephen Padilla

    Democratic • Senate

Cosponsors

  • Benjamin Allen

    Democratic • Senate

  • Josh Becker

    Democratic • Senate

  • Jacqui Irwin

    Democratic • House

  • Cottie Petrie-Norris

    Democratic • House

  • Henry Stern

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 197 • No: 0

Senate vote • 9/11/2025

Item 59 — Senate SFLOOR

Yes: 40 • No: 0

House vote • 9/10/2025

Item 55 — Assembly AFLOOR

Yes: 79 • No: 0

legislature vote • 8/29/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote • 7/14/2025

Vote in CX19

Yes: 7 • No: 0

Senate vote • 5/29/2025

Item 303 — Senate SFLOOR

Yes: 38 • No: 0

legislature vote • 5/23/2025

Vote in CS61

Yes: 6 • No: 0

legislature vote • 4/7/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote • 3/26/2025

Vote in CS83

Yes: 5 • No: 0

Actions Timeline

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

    10/1/2025Senate

  2. Approved by the Governor.

    10/1/2025legislature

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

    9/22/2025legislature

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

    9/11/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/10/2025Senate

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

    9/10/2025House

  7. Read second time. Ordered to third reading.

    9/2/2025House

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

    8/29/2025House

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

    8/20/2025House

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

    7/17/2025House

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

    7/17/2025House

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

    7/17/2025House

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

    7/15/2025House

  14. June 30 hearing postponed by committee.

    7/1/2025House

  15. Referred to Com. on REV. & TAX.

    6/5/2025House

  16. In Assembly. Read first time. Held at Desk.

    5/29/2025House

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

    5/29/2025Senate

  18. Ordered to special consent calendar.

    5/27/2025Senate

  19. Read second time. Ordered to third reading.

    5/23/2025Senate

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

    5/23/2025Senate

  21. Set for hearing May 23.

    5/16/2025Senate

  22. April 7 hearing: Placed on APPR. suspense file.

    4/7/2025Senate

  23. Set for hearing April 7.

    4/1/2025Senate

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

    3/27/2025Senate

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

    3/26/2025Senate

Bill Text

  • Chaptered

    10/1/2025

    HTML

  • Enrolled

    9/13/2025

    HTML

  • Amended Assembly

    7/17/2025

    HTML

  • Amended Senate

    3/27/2025

    HTML

  • Introduced

    2/10/2025

    HTML

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