AB 167 Summary

• Implements comprehensive tax policy changes including limits on net operating loss deductions and business credits for taxable years 2024-2027, with a $5,000,000 annual cap on total business credits.

• Modifies tire recycling fee administration by requiring California Department of Tax and Fee Administration to collect the California tire fee under the Fee Collection Procedures Law instead of prior inter-agency arrangements.

• Extends Historic Venue Restoration and Resiliency Act through November 1, 2030 with modifications to qualified event reporting, fund allocation procedures, and retailer notification requirements for tax segregation.

• Makes conforming changes to federal tax law, including disallowance of intangible drilling and development costs for oil and gas wells and percentage depletion deductions for coal, oil, and oil shale beginning January 1, 2024.

• Adjusts tax credit provisions including young child and foster youth tax credits to phase out based on earned income thresholds, extends electronic communication options for Franchise Tax Board indefinitely, and provides disaster relief provisions for tax filing deadlines.