California conformity.

• Position: FTB NEWS - Brief article

SB 401, the Conformity Act of 2010, was enacted April 12 and changes California's conformity date to the Internal Revenue Code from Jan. 1, 2005, to Jan. 1, 2009, for taxable years beginning on or after Jan. 1, 2010. Some highlights from the new law include:

* Federal energy grants provided in lieu of federal energy credits are excluded from California gross income and alternative minimum taxable income of individuals and business. The income exclusion is retroactive and applies to any taxable year.

* A surviving spouse may exclude from gross income up to $500,000 of the gain from the sale or exchange of a principal residence owned jointly with a deceased spouse if the sale or exchange occurs within two years of the death...