CA SB984

Allows California taxpayers to deduct qualified tips from their taxable income, conforming to federal income tax law under Section 224 of the Internal Revenue Code

Applies to taxable years beginning on or after January 1, 2026, and before January 1, 2029

Requires the Franchise Tax Board to submit a report to the Legislature by December 1, 2029, detailing the number of taxpayers claiming the deduction and the average dollar value deducted

Takes effect immediately as a tax levy and automatically repeals on December 1, 2029

Introduced by Senators Ochoa Bogh and Grove with bipartisan coauthors from both the Senate and Assembly