California Gov. Gavin Newsom’s proposed budget for the 2023-24 fiscal year includes the following tax proposals:
a California income tax exemption for student loan debt forgiven under the 2022 federal student loan debt relief plan, assuming litigation around the plan is resolved;
a requirement that net income derived from incomplete non-grantor trusts be subject to California income tax if the grantor of the trust is a California resident; and
an extension of the film and television tax credit program for an additional five years and a provision making the credit refundable prospectively.
Governor’s Budget Summary, California Gov. Gavin Newsom, January 2023