State Tax Day - Current, S.2, California—Corporate Income Tax: Apportionment Regulation Updated, (Sep 24, 2026)

A California regulation on the apportionment of business income has been updated to reflect changes made by Ch. 17 (S.B. 132), Laws 2025, which revised how banks and other financial institutions apportion business income for California tax purposes. The legislation removed "savings and loan activity" and "banking or financial business activity" from the definition of "qualified business activity," which requires banks and other financial institutions to utilize a single sales factor apportionment formula instead of an equally weighted three-factor apportionment formula for taxable years beginning on or after January 1, 2025. The updates to the regulation make the regulation consistent with the current statutory language.

Reg. 25128, California Franchise Tax Board, effective September 16, 2026