California Ready to Extend SALT-Cap Workaround, Corporate Breaks

California is poised to restore corporate tax breaks and extend the state’s workaround for the federal cap on deductions for state and local taxes.

Lawmakers finished fast action on the measure Monday and sent it to Gov. Gavin Newsom for his signature, delivering on his call for adjustments to the budget when the state is flush with a $45.7 billion surplus. Efforts in Congress to ease the SALT limit collapsed last year.

The bill (S.B. 113) is part of a package lawmakers rushed to the Democratic governor’s desk in less than a month, at his request, to make ...