CA SB376

Amends the definition of "incomplete gift nongrantor trust" to explicitly exclude trusts or portions of trusts that qualify as charitable remainder trusts under Section 664 of the Internal Revenue Code

Charitable remainder trusts will not be subject to the rules that include incomplete gift nongrantor trust income in the grantor's taxable income for California personal income tax purposes

The Legislature declares this amendment is clarifying existing law rather than creating a new change in tax treatment

Applies to the existing framework established for taxable years beginning on or after January 1, 2023, which requires grantors of incomplete gift nongrantor trusts to include trust income in their gross income