CA SB1436

Conforms California tax law to federal ABLE Act changes made by the One Big Beautiful Bill Act (Public Law 119-21) for taxable years beginning on or after January 1, 2026, affecting qualified ABLE programs for individuals with disabilities.

Removes the January 1, 2026 sunset date on enhanced contribution limits for designated ABLE account beneficiaries who have earned income, making this provision permanent.

Authorizes the California Department of Tax and Fee Administration (CDTFA) to reinstate exemptions for licensed vehicle dealers (those selling 1,000+ vehicles annually) from paying sales tax through the DMV, if account standing requirements are met.

Requires CDTFA to notify dealers when exemptions are reinstated, with reinstatement effective on the first day of a calendar quarter at least 30 days after notice.

Makes nonsubstantive and conforming changes to sales tax exemption provisions and ABLE account contribution requirements in the Revenue and Taxation Code and Welfare and Institutions Code.