SB1113 modifies California corporate tax to exclude income from qualifying shipping activities for certain corporations.

SB1113 amends the Revenue and Taxation Code to exclude income from qualifying shipping activities for electing corporations and members of electing groups. This exclusion applies to taxable years beginning on or after January 1, 2026. The bill also adjusts the basis of qualifying vessels and modifies the treatment of gains and losses from the sale or disposition of such vessels. The act goes into immediate effect upon enactment.

SB1113 modifies California corporate tax to exclude income from qualifying shipping activities for certain corporations.

SB1113 amends the Revenue and Taxation Code to exclude income from qualifying shipping activities for electing corporations and members of electing groups. This exclusion applies to taxable years beginning on or after January 1, 2026. The bill also adjusts the basis of qualifying vessels and modifies the treatment of gains and losses from the sale or disposition of such vessels. The act goes into immediate effect upon enactment.