A new state board would review California tax breaks that cost at least $1 billion and don’t expire, under a bill headed to Gov. Gavin Newsom.

Senate lawmakers Sept. 11 voted to accept amendments to S.B. 468 by Sen. Hannah-Beth Jackson (D), which passed the Assembly a day earlier. The bill would create a Tax Expenditure Review Board, which would recommend ways to reduce costs or make spending more effective in a report to the state legislature by Jan. 1, 2022.

Newsom (D) hasn’t taken a position on the legislation. He must sign or veto it by Oct. 13.

The...