SB302 excludes certain clean energy tax credits from gross income for personal and corporate tax purposes in California.

SB302 amends the Personal Income Tax Law and Corporation Tax Law to exclude certain clean energy tax credits from gross income for tax years beginning between 2026 and 2031. These credits, added by the federal Inflation Reduction Act of 2022, relate to elective payments and transfers of applicable credits. The exclusion aims to accelerate the transition to clean energy, reduce greenhouse gas emissions, and support energy innovation and investment. The bill also mandates the Franchise Tax Board to report to the Legislature on data related to these credits by November 1, 2029.

SB302 excludes certain clean energy tax credits from gross income for personal and corporate tax purposes in California.

SB302 amends the Personal Income Tax Law and Corporation Tax Law to exclude certain clean energy tax credits from gross income for tax years beginning between 2026 and 2031. These credits, added by the federal Inflation Reduction Act of 2022, relate to elective payments and transfers of applicable credits. The exclusion aims to accelerate the transition to clean energy, reduce greenhouse gas emissions, and support energy innovation and investment. The bill also mandates the Franchise Tax Board to report to the Legislature on data related to these credits by November 1, 2029.