Incomplete gift nongrantor trusts: Personal Income Tax Law.
Existing law, the Personal Income Tax Law, in partial conformity with federal income tax law, imposes a tax on the taxable income of estates or of any kind of property held in trust. That law provides the taxable income of an estate or trust is computed in the same manner as in the case of an individual, except as provided, and the tax is paid by the fiduciary of the trust or estate. Existing law provides that, where the grantor or another person is treated as the owner of any portion of the trust, known as a "grantor trust," then items of income, deductions, and credits against tax of the trust are included in computing the taxable income and credits of the grantor or other owner. Existing law, for taxable years beginning on or after January 1, 2023, includes the income of an incomplete gift nongrantor trust, as defined, in the gross income of the grantor to the extent the income of the trust would be taken into account in computing the grantor's taxable income if the trust were treated as a grantor trust, except as provided.
California SB 376 (20252026) — Incomplete gift nongrantor trusts: Personal Income Tax Law.
Existing law, the Personal Income Tax Law, in partial conformity with federal income tax law, imposes a tax on the taxable income of estates or of any kind of property held in trust. That law provides the taxable income of an estate or trust is computed in the same manner as in the case of an individual, except as provided, and the tax is paid by the fiduciary of the trust or estate. Existing law provides that, where the grantor or another person is treated as the owner of any portion of the trust, known as a "grantor trust," then items of income, deductions, and credits against tax of the trust are included in computing the taxable income and credits of the grantor or other owner. Existing law, for taxable years beginning on or after January 1, 2023, includes the income of an incomplete gift nongrantor trust, as defined, in the gross income of the grantor to the extent the income of the trust would be taken into account in computing the grantor's taxable income if the trust were treated as a grantor trust, except as provided.
Version chain
The bill's text revisions, in order — the diff chain from filing to enrollment.
Unfinished Business SB376 Valladares Concurrence — 40–0 (pass) · upper
Do pass, but first be re-referred to the Committee on [Appropriations] — 5–0 (pass) · upper
Do pass as amended and be re-referred to the Committee on [Appropriations] — 7–0 (pass) · lower
3rd Reading — 38–0 (pass) · upper
SB 376 Valladares Senate Third Reading By Quirk-Silva — 79–0 (pass) · lower
Sponsors
Valladares — primary (person)
Timeline
The legislative action history — every referral, reading, and vote.
2025-02-13 Introduced. Read first time. To Com. on RLS. for assignment. To print. introduction, reading-1
2025-02-14 From printer. May be acted upon on or after March 16.
2025-02-26 Referred to Com. on REV. & TAX. referral-committee
2025-03-18 Set for hearing May 14.
2025-05-14 From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 1082.) (May 14). Re-referred to Com. on APPR. committee-passage, committee-passage-favorable, referral-committee
2025-05-15 Set for hearing May 19.
2025-05-19 From committee: Be ordered to second reading pursuant to Senate Rule 28.8. committee-passage, reading-2
2025-05-20 Read second time. Ordered to third reading. reading-1, reading-2
2025-06-02 Read third time. Passed. (Ayes 38. Noes 0. Page 1387.) Ordered to the Assembly. passage, reading-1, reading-3
2025-06-03 In Assembly. Read first time. Held at Desk. reading-1
2025-06-09 Referred to Com. on REV. & TAX. referral-committee
2025-07-01 June 30 hearing postponed by committee.
2025-07-14 From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 7). amendment-passage, committee-passage, committee-passage-favorable
2025-07-15 Read second time and amended. Re-referred to Com. on APPR. amendment-passage, reading-1, reading-2, referral-committee
2025-08-18 Withdrawn from committee.
2025-08-18 Ordered to second reading.
2025-08-19 Read second time. Ordered to third reading. reading-1, reading-2
2025-09-10 Read third time. Passed. (Ayes 79. Noes 0. Page 3170.) Ordered to the Senate. passage, reading-1, reading-3
2025-09-10 In Senate. Concurrence in Assembly amendments pending.
2025-09-11 Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2882.) Ordered to engrossing and enrolling. amendment-passage, committee-passage-favorable
2025-09-22 Enrolled and presented to the Governor at 2 p.m.
2025-10-06 Approved by the Governor. executive-signature
2025-10-06 Chaptered by Secretary of State. Chapter 410, Statutes of 2025. became-law
Source
OpenStates / OpenCivicData bulk snapshot 2026-07-01; origin ocd-bill/b1bc3a16-d184-4f4f-8eb5-da4eacb89518. Confidence: reported (aggregated from official California legislature records).
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