Two tax-related bills sent to Governor

Governor Newsom is expected to sign two tax-related bills that were sent to him this week. The changes in these bills include, but are not limited to:

  • Requiring income from most incomplete gift nongrantor trusts (ING trusts) to be included in the grantor’s income beginning with the 2023 taxable year (SB 131);
  • Retroactively allowing taxpayers who owned real property or resided in Sonoma, Shasta, or Tehama counties during the 2019 Kincaid Fire or the 2020 Zogg Fire to exclude wildfire settlements paid by PG&E during the 2020 through 2027 taxable years (SB 131);
  • Creating a California Motion Picture and Television 4.0 Credit available for five years starting in 2025–26. This version of the credit removes the tentative minimum tax limitation and makes the credit refundable at the election of the taxpayer over a period of years at a discounted amount (SB 132); and
  • Revising the current Motion Picture and Television 3.0 Credit (SB 132) by:
    • Tightening the criteria for a certified studio construction project;
    • Reducing the amount of qualified wages a qualified motion picture must pay to least $5 million total rather than the current $7.5 million threshold per taxable year; and
    • Limiting the amount that may be allocated to a television series to $750,000 per episode.

SB 131 is available at:

SB 132 is available at:

Sign up for Spidell’s 2023/24 Federal and California Tax Update and get detailed information about all of California’s legislative changes enacted this year. Click here for details.