Senate BillIntroducedRevenue and Taxation
SB 984: Personal Income Tax Law: deductions: tips.
What SB 984 does, verified June 15, 2026
The bill aims to conform California's personal income tax law to federal income tax laws regarding qualified tips. It would allow taxpayers to deduct qualified tips from their taxable income for years 2026 through 2028, in line with federal law. The bill also requires specific goals, performance indicators, and data collection for new tax expenditures. It will take effect immediately as a tax levy, with additional information required for new tax expenditures.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: May 14 hearing: Held in committee and under submission. (2026-05-14)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions10 total · showing 5
| May. 14, 2026 | May 14 hearing: Held in committee and under submission. |
| May. 12, 2026 | Set for hearing May 14. |
| May. 11, 2026 | May 11 hearing: Placed on APPR. suspense file. |
| May. 07, 2026 | Set for hearing May 11. |
| May. 06, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 4154.) (May 6). Re-referred to Com. on APPR. |
Latest bill textAmended version, April 29, 2026 · 517 words
| Amended IN Senate April 29, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 984
| Introduced by Senators Ochoa Bogh and Grove (Coauthors: Senators Alvarado-Gil, Choi, Dahle, Hurtado, Jones, Seyarto, Strickland, and Valladares) (Coauthors: Assembly Members Alanis, Castillo, Davies, Hadwick, Hoover, Lackey, Patterson, and Tangipa) |
February 05, 2026 |
An act to add and repeal Section 17201.8 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 984, as amended, Ochoa Bogh. Personal Income Tax Law: deductions: tips.
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions in calculating taxable income. Existing federal income tax law, for taxable years beginning before January 1, 2029, allows deductions in determining taxable income, as defined, for amounts equal to the qualified tips, as defined.
This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2029, would conform to federal income tax law with regard to qualified tips. tips, except as provided.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
The people of the State of California do enact as follows:
SECTION 1.
Section 17201.8 is added to the Revenue and Taxation Code, to read:17201.8.
(a) For taxable years beginning on or after January 1, 2026, and before January 1, 2029, Section 224 of the Internal Revenue Code, relating to qualified tips, as it read on January 1, 2026, shall apply,(b) (1) For purposes of complying with Section 41, the Legislature finds and declares the following:
(A) The specific goal of the deduction provided by this section is to help workers retain more of their earnings.
(B) The performance indicators for the Legislature to use in determining whether the deduction achieves its goal shall be the number of taxpayers deducting tips from income pursuant to this section, and the average dollar value amount of those amounts deducted from income.
(2) (A) The Franchise Tax Board, no later than December 1, 2029, shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of taxpayers deducting tips from income under this section and the average dollar value of those amounts deducted.
(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542.
(c) This section shall remain operative only until December 1, 2029, and as of that date is repealed.
SEC. 2.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.Text of SB 984 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions