For taxable years beginning on or after January 1, 2025, California generally conforms to the Internal Revenue Code as of January 1, 2025, as modified, which means that it does not conform to many federal tax law changes since that time, including those in the One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025. As a result, tax planning opportunities and compliance risks can arise when federal and California treatment differ. In appropriate cases, California may allow a taxpayer to make a federal income tax election for California purposes only, and, conversely, California also allows taxpayers to decouple from a federal income tax election for California income tax purposes only. 

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