California Bill Excludes Federal Energy Credits From State Tax

Companies earning renewable energy credits and payments under the federal Inflation Reduction Act could exclude them from California income tax under a bill advancing in the Legislature.

The Senate passed the bill (S.B. 302) with a 38-0 vote on Thursday, one week after the US House of Representatives passed a sweeping tax and spending package (H.R. 1) that eliminates the 12 federal energy incentives created during the Biden administration.

• It is Sen. Steve Padilla’s (D) second attempt to win favorable state tax treatment for the federal incentives aimed at producing renewable energy. A similar bill ...