A California report describes the state’s plans for conformity to the Internal Revenue Code (IRC) federal Tax Cuts and Jobs Act (P.L. 115-97).
Preliminary Report on IRC Conformity
The Franchise Tax Board (FTB) released a preliminary report the covers new federal provisions concerning:
- the temporary reduction of the medical expense deduction floor;
- the limitation on the deduction for state and local taxes; and
- the repatriation of certain foreign-earned income.
For each topic, the report explains:
- new 2017 federal laws;
- corresponding California law; and
- the 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 plans 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.
Preliminary Report on Specific Provisions of the Federal Tax Cuts and Jobs Act, California Franchise Tax Board, February 12, 2018