reglab/statecodes huggingface dataset:
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 1 - Definition of Gross Income, Adjusted Gross Income, Taxable Income, etc. › Section 17073.5.

17073.5. (a) A taxpayer may elect to take a standard deduction as follows:
(1) In the case of a taxpayer, other than a head of a household or a surviving spouse (as defined in Section 17046) or a married couple filing a joint return, the standard deduction shall be one thousand eight hundred eighty dollars ($1,880).
(2) In the case of a head of household or a surviving spouse (as defined in Section 17046) or a married couple filing a joint return, the standard deduction shall be three thousand seven hundred sixty dollars ($3,760).
(b) The standard deduction provided for in subdivision (a) shall be in lieu of all deductions other than those which are to be subtracted from gross income in computing adjusted gross income under Section 17072.
(c) (1) The provisions of this section shall be applied in lieu of the provisions of Sections 63(c) and 63(f) of the Internal Revenue Code, relating to standard deductions.
(2) Notwithstanding paragraph (1), Section 63(c)(5) of the Internal Revenue Code, relating to limitations on the standard deduction of certain dependents, and Section 63(c)(6)of the Internal Revenue Code, relating to certain individuals not eligible for the standard deduction, shall apply, except as otherwise provided. For purposes of this paragraph, the amount specified in Section 63(c)(5) of the Internal Revenue Code shall be adjusted for inflation in accordance with the provisions of Section 63(c)(4) of the Internal Revenue Code.
(d) For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the standard deduction amounts prescribed in subdivision (a). That computation shall be made as follows:
(1) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment factor by adding 100 percent to that portion of the percentage change figure which is furnished pursuant to paragraph (1) and dividing the result by 100.
(3) The Franchise Tax Board shall multiply the standard deduction amounts in the preceding taxable year by the inflation adjustment factor determined in paragraph (2), and round off the resulting products to the nearest one dollar ($1).
(4) In computing the standard deduction amounts pursuant to this subdivision, the amount provided in paragraph (2) of subdivision (a) shall be twice the amount provided in paragraph (1) of subdivision (a).
(Amended by Stats. 1998, Ch. 322, Sec. 16. Effective August 20, 1998.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 1 - Definition of Gross Income, Adjusted Gross Income, Taxable Income, etc. › Section 17074.

17074. Section 64 of the Internal Revenue Code, relating to ordinary income defined, shall apply, except as otherwise provided.
(Amended by Stats. 1999, Ch. 987, Sec. 9. Effective October 10, 1999.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 1 - Definition of Gross Income, Adjusted Gross Income, Taxable Income, etc. › Section 17075.

17075. Section 65 of the Internal Revenue Code, relating to ordinary loss defined, shall apply, except as otherwise provided.
(Amended by Stats. 1999, Ch. 987, Sec. 10. Effective October 10, 1999.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 1 - Definition of Gross Income, Adjusted Gross Income, Taxable Income, etc. › Section 17076.

17076. (a) Section 67 of the Internal Revenue Code, relating to the 2-percent floor on miscellaneous itemized deductions, shall apply, except as otherwise provided.
(b) A deduction allowable under this part that exceeds three thousand dollars ($3,000) and is described in Section 17049, relating to computation of tax where taxpayer restores a substantial amount held under claim of right, may not be treated as a miscellaneous itemized deduction under Section 67 of the Internal Revenue Code, as applicable for purposes of this part.
(Amended by Stats. 2004, Ch. 354, Sec. 9. Effective August 30, 2004.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 1 - Definition of Gross Income, Adjusted Gross Income, Taxable Income, etc. › Section 17077.

17077. Section 68 of the Internal Revenue Code, relating to overall limitation on itemized deductions, shall apply, except as otherwise provided.
(a) “Six percent” shall be substituted for “3 percent” in Section 68(a)(1) of the Internal Revenue Code.
(b) Section 68(b)(1) of the Internal Revenue Code shall not apply and in lieu thereof the term “applicable amount” in each place it appears in Section 68(a) of the Internal Revenue Code means one hundred thousand dollars ($100,000) in the case of a single individual, or a spouse filing a separate return, one hundred fifty thousand dollars ($150,000) in the case of a head of household, and two hundred thousand dollars ($200,000) in the case of a surviving spouse, or spouses filing a joint return.
(c) Section 68(b)(2) of the Internal Revenue Code, relating to inflation adjustments, shall not apply. However, for any taxable year beginning on or after January 1, 1992, the applicable amounts specified in subdivision (b) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041.
(d) Section 68(f) of the Internal Revenue Code, relating to phaseout of limitation, shall not apply.
(e) Section 68(g) of the Internal Revenue Code, relating to termination, shall not apply.
(Amended by Stats. 2016, Ch. 50, Sec. 100. (SB 1005) Effective January 1, 2017.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 1 - Definition of Gross Income, Adjusted Gross Income, Taxable Income, etc. › Section 17078.

17078. (a) Section 988 of the Internal Revenue Code, relating to treatment of certain foreign currency transactions, shall apply, except as otherwise provided.
(b) Section 988(a)(3) of the Internal Revenue Code, relating to source, shall not apply.
(Amended by Stats. 1993, Ch. 877, Sec. 13. Effective October 6, 1993.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17081.

17081. Part II of Subchapter B of Chapter 1 of Subtitle A of the Internal Revenue Code, relating to items that are specifically included in gross income, shall apply, except as otherwise provided.
(Amended by Stats. 1993, Ch. 873, Sec. 5. Effective October 6, 1993.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17083.

17083. Section 85 of the Internal Revenue Code, relating to unemployment compensation, shall not apply.
(Amended by Stats. 1999, Ch. 987, Sec. 14. Effective October 10, 1999.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17085.

17085. Section 72 of the Internal Revenue Code, relating to annuities, certain proceeds of endowment and life insurance contracts, is modified as follows:
(a) The amendments and transitional rules made by Public Law 99-514 shall be applicable to this part for the same transactions and the same years as they are applicable for federal purposes, except that the repeal of Section 72(d) of the Internal Revenue Code, relating to repeal of special rule for employees’ annuities, shall apply only to the following:
(1) Any individual whose annuity starting date is after December 31, 1986.
(2) At the election of the taxpayer, any individual whose annuity starting date is after July 1, 1986, and before January 1, 1987.
(b) The amount of a distribution from an individual retirement account or annuity or employee trust or employee annuity that is includable in gross income for federal purposes shall be reduced for purposes of this part by the lesser of either of the following:
(1) An amount equal to the amount includable in federal gross income for the taxable year.
(2) An amount equal to the basis in the account or annuity allowed by Section 17507 (relating to individual retirement accounts and simplified employee pensions), the increased basis allowed by Sections 17504 and 17506 (relating to plans of self-employed individuals), the increased basis allowed by Section 17501, or the increased basis allowed by Section 17551 that is remaining after adjustment for reductions in gross income under this provision in prior taxable years.
(c) (1) Except as provided in paragraph (2), the amount of the additional tax imposed under this part shall be computed in accordance with Sections 72(m), (q), (t), and (v) of the Internal Revenue Code, as applicable for federal income tax purposes for the same taxable year, using a rate of 2
1
/
2
percent, in lieu of the rate provided in those sections.
(2) In the case where Section 72(t)(6) of the Internal Revenue Code, relating to special rules for simple retirement accounts, as applicable for federal income tax purposes for the same taxable year, applies, the rate in paragraph (1) shall be 6 percent in lieu of the 2
1
/
2
percent rate specified therein.
(d) Section 72(f)(2) of the Internal Revenue Code shall be applicable without applying the exceptions which immediately follow that paragraph.
(e) The amendments made by Section 844 of the federal Pension Protection Act of 2006 (P.L. 109-280) to Section 72(e) of the Internal Revenue Code, shall not apply.
(f) For purposes of this part, Section 2202(b) of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), relating to loans from qualified plans shall apply.
(Amended by Stats. 2020, Ch. 62, Sec. 1. (AB 276) Effective September 11, 2020.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17085.7.

17085.7. (a) In the case of any distribution made on account of a notice to withhold (pursuant to Section 18670 or 18670.5) on a qualified retirement plan, no additional tax shall be imposed in accordance with Section 72(t) of the Internal Revenue Code.
(b) This section shall apply to distributions after December 31, 1999.
(Added by Stats. 1999, Ch. 931, Sec. 4. Effective October 10, 1999.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17086.

17086. (a) Noncash patronage allocations from farmers’ cooperative and mutual associations (whether paid in capital stock, revolving fund certificates, retain certificates, certificates of indebtedness, letters of advice or in some other manner that discloses the dollar amount of those noncash patronage allocations) may, at the election of the taxpayer, be considered as income and included in gross income for the taxable year in which received.
(b) If a taxpayer exercises the election provided for in subdivision (a), the amount included in gross income shall be the face amount of those allocations.
(c) If a taxpayer elects to exclude noncash patronage allocations from gross income for the taxable year in which received, those allocations shall be included in gross income in the year that they are redeemed or realized upon.
(d) If a taxpayer exercises the election provided for in subdivision (c), the face amount of those noncash patronage allocations shall be disclosed in the return made for the taxable year in which those noncash patronage allocations were received.
(e) If a taxpayer exercises the election provided for in subdivision (a) or (c) for any taxable year, then the method of computing income so adopted shall be adhered to with respect to all subsequent taxable years unless with the approval of the Franchise Tax Board a change to a different method is authorized.
(f) If a taxpayer has made the election provided for in subdivision (c), then (1) the statutory period for the assessment of a deficiency for any taxable year in which the amount of any noncash patronage allocations are realized shall not expire prior to the expiration of four years from the date the Franchise Tax Board is notified by the taxpayer (in the manner as the Franchise Tax Board may by regulation prescribe) of the realization of gain on those allocations; and (2) that deficiency may be assessed prior to the expiration of that four-year period, notwithstanding the provisions of Section 19057 or the provisions of any other law or rule of law which would otherwise prevent that assessment.
(Amended by Stats. 1993, Ch. 31, Sec. 6. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17087.

17087. (a) Section 86 of the Internal Revenue Code, relating to Social Security and Tier 1 Railroad Retirement Benefits, shall not apply.
(b) Section 72(r) of the Internal Revenue Code, relating to Tier 2 Railroad Retirement Benefits, shall not apply.
(c) Section 105(h) of the Internal Revenue Code, relating to sick pay under the Railroad Unemployment Insurance Act, shall not apply.
(Amended by Stats. 1999, Ch. 987, Sec. 18. Effective October 10, 1999.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17087.5.

17087.5. Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code, relating to tax treatment of “S corporations” and their shareholders, shall apply, except as otherwise provided under this part or Part 11 (commencing with Section 23001).
(Repealed and added by Stats. 1993, Ch. 873, Sec. 7. Effective October 6, 1993.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17087.6.

17087.6. If a limited liability company is classified as a partnership for California tax purposes, a person with a membership or economic interest shall take into account amounts required to be recognized under Chapter 10 (commencing with Section 17851).
(Added by Stats. 1994, Ch. 1200, Sec. 52. Effective September 30, 1994.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17088.

17088. (a) Subchapter M of Chapter 1 of Subtitle A of the Internal Revenue Code, relating to regulated investment companies and real estate investment trusts, shall apply, except as otherwise provided.
(b) Section 17145 shall apply in lieu of Section 852(b)(5) of the Internal Revenue Code, relating to exempt-interest dividends.
(c) (1) Section 852(b)(3)(D) of the Internal Revenue Code, relating to treatment by shareholders of undistributed capital gains, shall not apply.
(2) Section 852(g)(1)(A) of the Internal Revenue Code is modified by substituting the phrase “subdivision (a) of Section 17145” for the phrase “the first sentence of subsection (b)(5)” contained therein.
(Amended by Stats. 2015, Ch. 359, Sec. 5. (AB 154) Effective September 30, 2015. Applicable to taxable years beginning on or after January 1, 2015, as provided in Sec. 41 of Stats. 2015, Ch. 359.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17088.3.

17088.3. (a) Section 7518 of the Internal Revenue Code, relating to tax incentives relating to merchant marine capital construction funds, shall apply, except as otherwise provided.
(b) Section 7518(d)(2)(C) of the Internal Revenue Code is modified as follows:
(1) By substituting “70 percent” in lieu of the reference to “the percentage applicable under Section 243(a)(1).”
(2) To refer to Section 24402 in lieu of Section 243 of the Internal Revenue Code.
(c) Section 7518(d)(2)(D) of the Internal Revenue Code is modified to refer to “interest income exempt from taxation under this part” in lieu of “interest income exempt from taxation under Section 103.”
(d) Section 7518(g)(3) of the Internal Revenue Code is modified as follows:
(1) To refer to Article 6 (commencing with Section 19101) of Chapter 4 of Part 10.2 in lieu of Section 6601 of the Internal Revenue Code.
(2) To refer to Article 7 (commencing with Section 19131) of Chapter 4 of Part 10.2 in lieu of Section 6651 of the Internal Revenue Code.
(e) Section 7518(g)(6) of the Internal Revenue Code is modified as follows:
(1) By substituting a reference to “this part” in lieu of “Chapter 1” in each place in which it appears.
(2) To refer to Section 17041 in lieu of Section 1 of the Internal Revenue Code.
(3) The last sentence in Section 7518(g)(6)(A) of the Internal Revenue Code shall not apply.
(Added by Stats. 1997, Ch. 611, Sec. 12. Effective October 3, 1997.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 2 - Items Specifically Included in Gross Income › Section 17090.

17090. Gross income includes cash allowances received by an employee under a parking cash-out program, except any portion used for a ridesharing purpose and excluded from gross income by Section 17149.
(Added by Stats. 1992, Ch. 554, Sec. 6. Effective January 1, 1993.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.

17131. Part III of Subchapter B of Chapter 1 of Subtitle A of the Internal Revenue Code, relating to items that are specifically excluded from gross income, shall apply, except as otherwise provided.
(Amended by Stats. 2005, Ch. 691, Sec. 7. Effective October 7, 2005.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.1.

17131.1. (a) Gross income does not include any excludable restitution payments received by an eligible individual (or the individual’s heirs or estate) and any excludable interest.
(b) For purposes of this section:
(1) The basis of any property received by an eligible individual (or the individual’s heirs or estate) as part of an excludable restitution payment shall be the fair market value of that property as of the time of the receipt.
(2) “Eligible individual” means a person who was persecuted on the basis of race, religion, physical or mental disability, or sexual orientation by Nazi Germany, any other Axis regime, or any other Nazi-controlled or Nazi-allied country.
(3) “Excludable restitution payment” means any payment or distribution to an individual (or the individual’s heirs or estate) that is any of the following:
(A) Is payable by reason of the individual’s status as an eligible individual, including any amount payable by any foreign country, the United States of America, or any other foreign or domestic entity, or a fund established by any such country or entity, any amount payable as a result of a final resolution of a legal action, and any amount payable under a law providing for payments or restitution of property.
(B) Constitutes the direct or indirect return of, or compensation or reparation for, assets stolen or hidden from, or otherwise lost to, the individual before, during, or immediately after World War II by reason of the individual’s status as an eligible individual, including any proceeds of insurance under policies issued on eligible individuals by European insurance companies immediately before and during World War II.
(C) Consists of interest which is payable as part of any payment or distribution described in subparagraph (A) or (B).
(4) “Excludable interest” means any interest earned by any of the following:
(A) Escrow accounts or settlement funds established pursuant to the settlement of the action entitled “In re: Holocaust Victim Assets Litigation,” (E.D.N.Y.) C.A. No. 96-4849.
(B) Funds to benefit eligible individuals or their heirs created by the International Commission on Holocaust Insurance Claims as a result of the Agreement between the Government of the United States of America and the Government of the Federal Republic of Germany concerning the Foundation “Remembrance, Responsibility, and Future,” dated July 17, 2000.
(C) Similar funds subject to the administration of the United States courts created to provide excludable restitution payments to eligible individuals (or eligible individuals’ heirs or estates).
(c) (1) This section shall apply to any amount received on or after January 1, 2000.
(2) Nothing in this section shall be construed to create any inference with respect to the proper tax treatment of any amount received before January 1, 2000.
(Added by Stats. 2002, Ch. 701, Sec. 2. Effective January 1, 2003.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.2.

17131.2. (a) Gross income does not include any excludable settlement payments received by an eligible individual (or the individual’s heirs or estate) and any excludable interest.
(b) For purposes of this section:
(1) The basis of any property received by an eligible individual (or the individual’s heirs or estate) as part of an excludable settlement payment shall be the fair market value of that property as of the time of the receipt.
(2) “Eligible individual” means a person who was persecuted on the basis of race or religion by the regime that was in control of the Ottoman Turkish Empire from 1915 through 1923.
(3) “Excludable settlement payment” means any payment or distribution to an individual (or the individual’s heirs or estate) that is any of the following:
(A) Is payable by reason of the individual’s status as an eligible individual, including any amount payable by any foreign or domestic entity or a fund established by any entity, any amount payable as a result of a final resolution of a legal action, and any amount payable under a law providing for payments or restitution of property.
(B) Constitutes compensation to the individual from 1915 until 1923, by reason of the individual’s status as an eligible individual, including any proceeds of insurance under policies issued on eligible individuals immediately before 1915 and during the time period from 1915 until 1923.
(C) Consists of interest that is payable as part of any payment or distribution described in subparagraph (A) or (B).
(4) “Excludable interest” means any interest earned by any of the following:
(A) A fund to benefit eligible individuals or their heirs created by an international commission or an international organization.
(B) A fund subject to the administration of the United States courts created to provide excludable settlement payments to eligible individuals (or eligible individuals’ heirs or estates).
(c) (1) This section applies to any amount received on or after January 1, 2005.
(2) This section may not be construed to create any inference with respect to the proper tax treatment of any amount received before January 1, 2005.
(Added by Stats. 2004, Ch. 402, Sec. 2. Effective January 1, 2005.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.3.

17131.3. Any grant made in any taxable year by the Secretary of the Treasury under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 (Public Law 111-5) to a person that places in service specified energy property shall not be includable in the gross income or the alternative minimum taxable income of the taxpayer, but shall be taken into account in determining the basis of the property to which that grant relates, except that the basis of that property shall be reduced using rules prescribed under Section 50(c) of the Internal Revenue Code in the same manner as a credit allowed under Section 48(a) of the Internal Revenue Code, and adjusted in accordance with rules applied by the Secretary of the Treasury under Section 1603(f) of the American Recovery and Reinvestment Tax Act of 2009 (Public Law 111-5).
(Added by Stats. 2010, Ch. 14, Sec. 11. (SB 401) Effective January 1, 2011.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.4.

17131.4. Section 106(d) of the Internal Revenue Code, relating to contributions to health savings accounts, shall not apply.
(Added by Stats. 2005, Ch. 691, Sec. 7.5. Effective October 7, 2005.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.5.

17131.5. Section 125(d)(2)(D) of the Internal Revenue Code, relating to the exception for health savings accounts, shall not apply.
(Added by Stats. 2005, Ch. 691, Sec. 7.6. Effective October 7, 2005.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.6.

17131.6. Section 107 of the Internal Revenue Code is modified by substituting in paragraph (2) the phrase “the rental allowance paid to him or her as part of his or her compensation, to the extent used by him or her to rent or provide a home” in lieu of the phrase “the rental allowance paid to him as part of his compensation, to the extent used by him to rent or provide a home and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities” contained therein.
(Added by Stats. 2005, Ch. 691, Sec. 8. Effective October 7, 2005.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.7.

17131.7. (a) For taxable years beginning on or after January 1, 2018, gross income shall not include earned income of an eligible taxpayer.
(b) For purposes of this section, the following definitions shall apply:
(1) “Earned income” has the same meaning as provided in Section 32(c)(2) of the Internal Revenue Code, relating to earned income, as modified to substitute the phrase “but only if such amounts would have been otherwise properly includable in gross income for the taxable year without regard to subdivision (a) and only to the extent that the earned income is derived from sources within Indian country in this state” for the phrase “but only if such amounts are includable in gross income for the taxable year.”
(2) “Eligible taxpayer” means an individual who is a member of a federally recognized Indian tribe in this state who resides within Indian country in this state.
(3) “Indian country” has the same meaning as provided in Section 30101.7.
(Added by Stats. 2018, Ch. 52, Sec. 4. (SB 855) Effective June 27, 2018.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.9.

17131.9. Gross income does not include any supplementary payment received by an individual pursuant to Section 12306.6 of the Welfare and Institutions Code.
(Added by Stats. 2010, Ch. 725, Sec. 8. (AB 1612) Effective October 19, 2010. Note: See Sec. 32 of Ch. 725.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.10.

17131.10. Notwithstanding any other law, for purposes of this part, the natural gas transmission line explosion on September 9, 2010, in San Bruno, California, shall be treated as a qualified disaster within the meaning of Section 139 of the Internal Revenue Code. This section shall apply to payments made on or after September 9, 2010.
(Added by Stats. 2011, Ch. 18, Sec. 1. (AB 50) Effective April 7, 2011.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.11.

17131.11. (a) Gross income does not include any payments received by an individual pursuant to Section 8150, 8150.2, or 8151 of the Welfare and Institutions Code.
(b) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.
(Amended by Stats. 2021, Ch. 71, Sec. 2. (SB 139) Effective July 12, 2021. Repealed as of January 1, 2025, by its own provisions.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.12.

17131.12. (a) Gross income does not include any payments received by an individual from a guaranteed income pilot program or project that receives a grant pursuant to Section 18997 of the Welfare and Institutions Code.
(b) This section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.
(Added by Stats. 2022, Ch. 50, Sec. 12. (SB 187) Effective June 30, 2022. Inoperative July 1, 2026, by its own provisions. Repealed as of January 1, 2027, by its own provisions.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.13.

17131.13. Gross income does not include any payment received by an individual pursuant to Section 8257 of the Welfare and Institutions Code.
(Added by Stats. 2023, Ch. 40, Sec. 21. (AB 129) Effective July 10, 2023.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.15.

17131.15. (a) Gross income does not include any payments received by an individual pursuant to Section 8161 of the Welfare and Institutions Code.
(b)  This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
(Added by renumbering Section 17131.12 (as added by Stats. 2022, Ch. 51, Sec. 2) by Stats. 2023, Ch. 131, Sec. 209. (AB 1754) Effective January 1, 2024. Repealed as of January 1, 2027, by its own provisions.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.16.

17131.16. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code).
(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
(Added by Stats. 2022, Ch. 3, Sec. 9. (SB 113) Effective February 9, 2022. Repealed as of December 1, 2026, by its own provisions.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.17.

17131.17. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant under the California Arrearage Payment Program (CAPP), pursuant to the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section 16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).
(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
(Added by Stats. 2022, Ch. 3, Sec. 10. (SB 113) Effective February 9, 2022. Repealed as of December 1, 2026, by its own provisions.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.20.

17131.20. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2027, gross income does not include a bill credit or credits received by a customer from a utility applicant under the 2022 California Arrearage Payment Program, pursuant to Article 13 (commencing with Section 16429.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code.
(b) This section shall remain in effect only until December 1, 2027, and as of that date is repealed.
(Added by Stats. 2022, Ch. 61, Sec. 12. (AB 205) Effective June 30, 2022. Repealed as of December 1, 2027, by its own provisions.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.21.

17131.21. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2027, gross income does not include any amount relating to the discharge of any unpaid fees due or owed by a student to a community college which was discharged pursuant to subparagraph (G) of paragraph (3) of subdivision (a) of Section 32527 of the Education Code.
(b) (1) For the purposes of complying with Section 41, the Legislature finds and declares that the purpose of the exclusion allowed by this section is to provide financial relief to community college students affected by the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.
(2) The performance indicators used to determine whether the exclusion is achieving its stated purpose are the number of students that had fees discharged pursuant to subparagraph (G) of paragraph (3) of subdivision (a) of Section 32527 of the Education Code, and the total dollar value of those fees discharged.
(3) The report required to be submitted by the Chancellor’s Office of the California Community Colleges to the Legislature, as required by paragraph (5) of subdivision (a) of Section 32527 of the Education Code, shall constitute reporting for the purpose of complying with Section 41.
(c) This section shall remain in effect only until December 1, 2027, and as of that date is repealed.
(Added by Stats. 2023, Ch. 5, Sec. 1. (AB 111) Effective May 15, 2023. Repealed as of December 1, 2027, by its own provisions.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17131.22.

17131.22. (a) For taxable years beginning on or after January 1, 2020, and before January 1, 2028, gross income does not include amounts of certain emergency financial aid grants received by a student in postsecondary education pursuant to, or described in, any of the following:
(1) Section 3504 or 18004 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Public Law 116-136).
(2) Section 314 of Division M or Section 277 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).
(3) Section 2003 of the American Rescue Plan Act of 2021 (Public Law 117-2).
(b) (1) For purposes of complying with Section 41, as it pertains to this section, the Legislature finds and declares as follows:
(A) The specific goal, purpose, and objective of the exclusion is to provide financial relief to recipients of specified pandemic relief funds.
(B) The performance indicators for the Legislature to use in determining if the exclusion has achieved this goal shall be the number of taxpayers excluding specified pandemic relief from income based on this section, and the total dollar value of income so excluded.
(2) The Legislative Analyst’s Office shall, no later than November 1, 2028, submit a report to the Legislature, in accordance with Section 9795 of the Government Code, that estimates the number of taxpayers with specified pandemic relief excluded from income, and estimates the total dollar value of the specified pandemic relief received, to the extent data is available.
(c) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
(Added by Stats. 2023, Ch. 5, Sec. 2. (AB 111) Effective May 15, 2023. Repealed as of December 1, 2028, by its own provisions.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17132.

17132. Section 114 of the Internal Revenue Code, relating to extraterritorial income, shall not apply.
(Added by Stats. 2002, Ch. 34, Sec. 8. Effective May 8, 2002. See identical section added by Stats. 2002, Ch. 35.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17132.

17132. Section 114 of the Internal Revenue Code, relating to extraterritorial income, shall not apply.
(Added by Stats. 2002, Ch. 35, Sec. 8. Effective May 8, 2002.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17132.1.

17132.1. (a) For taxable years beginning on or after January 1, 2021, and until January 1, 2026, a nonresident alien’s gross income does not include any payment made by an agent pursuant to subdivision (c) of Section 18537.
(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
(Added by Stats. 2020, Ch. 102, Sec. 1. (AB 2660) Effective January 1, 2021. Repealed as of December 1, 2026, by its own provisions.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17132.4.

17132.4. (a) For taxable years beginning on or after January 1, 2005, gross income does not include the death benefits received by an eligible individual.
(b) For purposes of this section:
(1) “Death benefit” means the entire amount of the death benefit payment made pursuant to Chapter 3.5 (commencing with Section 850) of Division 4 of the Military and Veterans Code.
(2) “Eligible individual” means the surviving spouse of, or a beneficiary designated by, any member of the California National Guard, State Guard, or Naval Militia who dies or is killed in the performance of duty, as provided in Section 850 of the Military and Veterans Code.
(Amended by Stats. 2020, Ch. 97, Sec. 46. (AB 2193) Effective January 1, 2021.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17132.5.

17132.5. Section 101 of the Internal Revenue Code, relating to certain death benefits, is modified as follows:
(a) Section 101(h) of the Internal Revenue Code, relating to survivor benefits attributable to service by a public safety officer who is killed in the line of duty, is modified to apply to amounts received in taxable years beginning after December 31, 1996, with respect to individuals dying after December 31, 1996.
(b) (1) Section 101 of the Internal Revenue Code, as modified by subdivision (a) is modified to additionally provide that Section 101(h) of the Internal Revenue Code shall not apply to survivor benefits attributable to service by a public safety officer who is killed in the line of duty with respect to deaths occurring before December 31, 1996, that would otherwise be eligible for exclusion pursuant to Section 101(h) of the Internal Revenue Code, as modified by Public Law 107-15.
(2) The amendments made to this section by Chapter 691 of the Statutes of 2005 shall apply to amounts paid after December 31, 2001, with respect to deaths occurring on or before December 31, 1996.
(c) (1) Section 101 of the Internal Revenue Code, as modified by subdivision (b), is modified to additionally provide that Section 101(i) of the Internal Revenue Code shall apply to any astronaut whose death occurs in the line of duty.
(2) The amendments made to this section by Chapter 552 of the Statutes of 2004 shall apply to amounts received in taxable years beginning after December 31, 2002, with respect to deaths occurring after that date.
(d) Section 101(j) of the Internal Revenue Code, relating to the treatment of certain employer-owned life insurance contracts, shall apply in accordance with the provisions of Section 863 of the Pension Protection Act of 2006 (Public Law 109-280), relating to effective dates, except that the phrase “January 1, 2010,” shall be substituted for “the date of the enactment of this Act” contained therein.
(Amended by Stats. 2010, Ch. 14, Sec. 12. (SB 401) Effective January 1, 2011.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17132.7.

17132.7. A payment under Section 103(c)(10) of the Ricky Ray Hemophilia Relief Fund Act of 1998 (Public Law 105-369) to an individual shall be treated for purposes of this part, Part 10.2 (commencing with Section 18401) and Part 11 (commencing with Section 23001) as damages described in Section 104(a)(2) of the Internal Revenue Code.
(Added by renumbering Section 17132.6 (as added by Stats. 2002, Ch. 35) by Stats. 2002, Ch. 807, Sec. 4. Effective September 23, 2002.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17132.8.

17132.8. (a) For purposes of this part, Part 10.2 (commencing with Section 18401), and Part 11 (commencing with Section 23001), gross income shall not include any amount received from the Virginia Polytechnic Institute and State University, out of amounts transferred from the Hokie Spirit Memorial Fund established by the Virginia Tech Foundation, an organization organized and operated as described in Section 501(c)(3) of the Internal Revenue Code, if that amount is paid on account of the events on April 16, 2007, at that university.
(b) This section shall apply without regard to taxable year.
(Added by Stats. 2010, Ch. 14, Sec. 13. (SB 401) Effective January 1, 2011.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17132.11.

17132.11. (a) For taxable years beginning on or after January 1, 2014, gross income shall not include any loan amount repaid by the United States Secretary of Education or canceled pursuant to Section 1098e of Title 20 of the United States Code relating to income-based repayment.
(b) For taxable years beginning on or after January 1, 2017, and before January 1, 2022, gross income shall not include any loan amount repaid by the United States Secretary of Education or canceled pursuant to Section 1087e(e) of Title 20 of the United States Code relating to income-contingent repayment.
(Amended by Stats. 2018, Ch. 92, Sec. 193. (SB 1289) Effective January 1, 2019.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17133.

17133. Income which this state is prohibited from taxing includes interest on bonds issued by this state or a local government in this state, and the determination of whether a bond is issued by this state or a local government in this state shall be made without regard to (a) the source of payment of that bond or the security for that bond, public or private, and (b) whether or not public improvements are financed. If there is at any time following the original issuance of such a bond a separation in ownership between the bond and any right to receive interest on the bond (whether or not evidenced by a coupon), payments or accruals on that stripped bond and stripped coupon shall be treated in a manner consistent with Section 1286(d) of the Internal Revenue Code.
(Amended by Stats. 1989, Ch. 1352, Sec. 26. Effective October 2, 1989. Applicable to taxable years beginning on or after January 1, 1989, by Sec. 172 of Ch. 1352.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10 - PERSONAL INCOME TAX › CHAPTER 3 - Computation of Taxable Income › ARTICLE 3 - Items Specifically Excluded from Gross Income › Section 17133.5.

17133.5. The following phrase (or its substantial equivalent) in other codes or statutes does not exempt the gain or loss from the sale or transfer of bonds from the provisions of this part:
“The issuance, transfer and interest income earned on any bonds issued by an agency (state or local) under this article (chapter, section, etc.) is exempt from taxation of every kind by any state or local entity.”
(Added by Stats. 1986, Ch. 317, Sec. 1. Effective July 15, 1986.)