California 2025-2026 Regular Session

California Assembly Bill AB702 Compare Versions

Only one version of the bill is available at this time.

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1	1	CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 702Introduced by Assembly Member TaFebruary 14, 2025 An act to add Section 17133.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 702, as introduced, Ta. Personal income tax: exclusions: interest income: theft.The Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing law, in modified conformity with federal income tax law, allows a deduction for specified investment interest, not to exceed the net investment income of the taxpayer for the taxable year, as provided. This bill, for taxable years beginning on or after January 1, 2026, would provide an exclusion from gross income for any amount of interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred, as specified. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17133.2 is added to the Revenue and Taxation Code, to read:17133.2. (a) For taxable years beginning on or after January 1, 2026, gross income shall not include any amount of qualified investment interest income generated by a taxpayer.(b) For purposes of this section, qualified investment interest means interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred during the taxable year so that the interest income is no longer under the possession or control of the taxpayer.(c) A deduction shall not be allowed with respect to any amount that a taxpayer excludes from income pursuant to this section. SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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3	3	CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 702Introduced by Assembly Member TaFebruary 14, 2025 An act to add Section 17133.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 702, as introduced, Ta. Personal income tax: exclusions: interest income: theft.The Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing law, in modified conformity with federal income tax law, allows a deduction for specified investment interest, not to exceed the net investment income of the taxpayer for the taxable year, as provided. This bill, for taxable years beginning on or after January 1, 2026, would provide an exclusion from gross income for any amount of interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred, as specified. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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9	9	CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
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11	11	Assembly Bill
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13	13	No. 702
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15	15	Introduced by Assembly Member TaFebruary 14, 2025
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17	17	Introduced by Assembly Member Ta
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20	20	An act to add Section 17133.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
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22	22	LEGISLATIVE COUNSEL'S DIGEST
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24	24	## LEGISLATIVE COUNSEL'S DIGEST
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26	26	AB 702, as introduced, Ta. Personal income tax: exclusions: interest income: theft.
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28	28	The Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing law, in modified conformity with federal income tax law, allows a deduction for specified investment interest, not to exceed the net investment income of the taxpayer for the taxable year, as provided. This bill, for taxable years beginning on or after January 1, 2026, would provide an exclusion from gross income for any amount of interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred, as specified. This bill would take effect immediately as a tax levy.
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30	30	The Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing law, in modified conformity with federal income tax law, allows a deduction for specified investment interest, not to exceed the net investment income of the taxpayer for the taxable year, as provided.
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32	32	This bill, for taxable years beginning on or after January 1, 2026, would provide an exclusion from gross income for any amount of interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred, as specified.
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34	34	This bill would take effect immediately as a tax levy.
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36	36	## Digest Key
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38	38	## Bill Text
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40	40	The people of the State of California do enact as follows:SECTION 1. Section 17133.2 is added to the Revenue and Taxation Code, to read:17133.2. (a) For taxable years beginning on or after January 1, 2026, gross income shall not include any amount of qualified investment interest income generated by a taxpayer.(b) For purposes of this section, qualified investment interest means interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred during the taxable year so that the interest income is no longer under the possession or control of the taxpayer.(c) A deduction shall not be allowed with respect to any amount that a taxpayer excludes from income pursuant to this section. SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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42	42	The people of the State of California do enact as follows:
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44	44	## The people of the State of California do enact as follows:
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46	46	SECTION 1. Section 17133.2 is added to the Revenue and Taxation Code, to read:17133.2. (a) For taxable years beginning on or after January 1, 2026, gross income shall not include any amount of qualified investment interest income generated by a taxpayer.(b) For purposes of this section, qualified investment interest means interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred during the taxable year so that the interest income is no longer under the possession or control of the taxpayer.(c) A deduction shall not be allowed with respect to any amount that a taxpayer excludes from income pursuant to this section.
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48	48	SECTION 1. Section 17133.2 is added to the Revenue and Taxation Code, to read:
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50	50	### SECTION 1.
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52	52	17133.2. (a) For taxable years beginning on or after January 1, 2026, gross income shall not include any amount of qualified investment interest income generated by a taxpayer.(b) For purposes of this section, qualified investment interest means interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred during the taxable year so that the interest income is no longer under the possession or control of the taxpayer.(c) A deduction shall not be allowed with respect to any amount that a taxpayer excludes from income pursuant to this section.
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54	54	17133.2. (a) For taxable years beginning on or after January 1, 2026, gross income shall not include any amount of qualified investment interest income generated by a taxpayer.(b) For purposes of this section, qualified investment interest means interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred during the taxable year so that the interest income is no longer under the possession or control of the taxpayer.(c) A deduction shall not be allowed with respect to any amount that a taxpayer excludes from income pursuant to this section.
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56	56	17133.2. (a) For taxable years beginning on or after January 1, 2026, gross income shall not include any amount of qualified investment interest income generated by a taxpayer.(b) For purposes of this section, qualified investment interest means interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred during the taxable year so that the interest income is no longer under the possession or control of the taxpayer.(c) A deduction shall not be allowed with respect to any amount that a taxpayer excludes from income pursuant to this section.
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60	60	17133.2. (a) For taxable years beginning on or after January 1, 2026, gross income shall not include any amount of qualified investment interest income generated by a taxpayer.
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62	62	(b) For purposes of this section, qualified investment interest means interest income that a taxpayer generates on an investment during the taxable year and, without the qualified taxpayers consent and against the qualified taxpayers will, is stolen, sold, or otherwise transferred during the taxable year so that the interest income is no longer under the possession or control of the taxpayer.
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64	64	(c) A deduction shall not be allowed with respect to any amount that a taxpayer excludes from income pursuant to this section.
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66	66	SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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68	68	SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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70	70	SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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72	72	### SEC. 2.