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ARTICLE · 19 FEBRUARY 2025

California Considers Selective IRC Conformity And Key Exclusions

MGO CPA LLP
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The California Senate Revenue and Taxation Committee has released its 2024 tax conformity recommendations on whether California should conform to various changes...

United StatesTax
Macias Gini & O'Connell
Macias Gini & O'Connell
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Key Takeaways

  • The California Senate Revenue and Taxation Committee has proposed selective conformity to certain post-2015 IRC provisions, notably excluding key TCJA sections like GILTI inclusion and interest deductibility.
  • Stakeholders had until January 15, 2025, to provide public feedback on these recommendations, which could influence California's approach to IRC conformity.
  • The recommendations underscore California's cautious approach to updating its IRC conformity, focusing on case-by-case adoption—rather than a comprehensive update to the 2015 conformity date.

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The California Senate Revenue and Taxation Committee has released its 2024 tax conformity recommendations on whether California should conform to various changes made to the Internal Revenue Code after January 1, 2015 (known as "selective conformity"). The committee requested public feedback to the proposed recommendations by January 15, 2025.

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