Details of Public Law 119-21, section 70421 , One Big Beautiful Bill Act

California does not conform to the deferral and exclusion of capital gains reinvested or invested in qualified opportunity zone funds under IRC sections 1400Z-1 and 1400Z-2 and does not conform to the changes made by OBBBA to these provisions.

California law provides, under the AFITL, that the FTB may require a copy of any information return required to be filed with the Secretary of the Treasury and enacted on or after January 1, 2009, at the time and in the form and manner as the FTB may, by forms and instructions, require.

California does not conform to the new section that added information reporting requirements penalties for any person required to file an annual return on behalf of a qualified fund under IRC section 6039K. However, California has standalone penalties provisions that are imposed for the failure to file correction information returns and payee statements required under the AFITL. These penalties are determined in accordance with IRC sections 6721 and 6722.