The Franchise Tax Board (FTB) released a preliminary report describing California’s conformity to selected provisions of the federal Tax Cuts and Jobs Act (P.L. 115-97). The report covers new federal provisions concerning the:
– temporary reduction of the medical expense deduction floor;
– limitation on the deduction for state and local taxes; and
– repatriation of certain foreign-earned income.
For each topic, the report explains the:
– new 2017 federal laws;
– corresponding California law; and
– impact on California revenue if the state were to conform to the federal changes.
Additional Guidance to Follow
The FTB is required by law to produce an annual report on all changes to federal income tax law enacted in the previous year. However, since the federal changes enacted in 2017 are significant, the FTB is planning to release additional preliminary reports by:
– March 2, 2018; and
– March 26, 2018.
The final summary of 2017 federal income tax changes will be released by April 20, 2018.
Subscribers can view the first preliminary report.
Preliminary Report on Specific Provisions of the Federal Tax Cuts and Jobs Act, California Franchise Tax Board, February 12, 2018