By Daniel Sabet · Cannabis CFO & Financial Advisor, GreenGrowth CPAs · Tax Strategy & Growth Planning · Los Angeles, CA | Published July 2026 | California Tax Advisory
California Trump Accounts finally have clarity. Governor Newsom signed Senate Bill 180 on July 14, 2026. As a result, these accounts now follow federal tax rules retroactive to the 2026 tax year. Earnings inside the account are no longer taxable until distributed. Additionally, SB 180 extends the California Competes Tax Credit through the 2034 tax year. Both changes took effect immediately.
QUICK ANSWER
California SB 180 conforms state tax treatment of Trump Accounts to federal rules retroactive to 2026. Earnings are now tax-deferred until distribution. Employer contributions qualify for IRC Section 128 exclusion. Additionally, qualified governmental and charitable contributions are excluded from the beneficiary’s gross income. Finally, SB 180 extends the California Competes Tax Credit through the 2034 tax year.
California Trump Accounts and SB 180: At a Glance
- What SB 180 covers: Conformity to federal Trump Account tax treatment. Additionally, a five-year California Competes Tax Credit extension.
- Who this applies to: California families with children, employers offering Trump Account contributions, and businesses applying for California Competes.
- Trump Account conformity: Retroactive to 2026. Earnings are not taxable until distributed.
- Employer contributions: California conforms to IRC Section 128 exclusion.
- California Competes extension: Runs through the 2034 tax year.
- GreenGrowth’s role: We advise California families and businesses on SB 180 tax planning. Explore our Tax Planning Services →
How SB 180 Changes California Trump Accounts
Trump Accounts were created under the federal One Big Beautiful Bill Act. Congress signed the bill on July 4, 2025. The accounts function like a traditional IRA for children. Federal law defers taxes on earnings until distribution.
However, California originally did not conform. State conformity to the Internal Revenue Code was fixed at January 1, 2025. Because Trump Accounts did not exist yet, California families faced state tax on annual earnings. This created a serious mismatch.
What Changes for Families and Employers
Now, SB 180 fixes the mismatch retroactive to 2026. Trump Account earnings inside these accounts are deferred until distribution. Additionally, employer contributions are excluded under IRC Section 128 conformity. Furthermore, qualified charitable and governmental contributions are excluded from the beneficiary’s gross income. As a result, families who contributed in 2026 no longer face separate state tax tracking. For federal background on the program, see the U.S. Department of the Treasury website.
💬 The Conversation Worth Having
Every California family with a 2026 Trump Account contribution gets a simpler tax picture now. Before SB 180, families needed dual tax records. Federal treatment ran on one side. Additionally, California tax on annual earnings ran on the other. That complexity is gone. However, if you already filed a 2026 estimated tax payment factoring in Trump Account earnings, you may need to adjust. Furthermore, employers who paused Trump Account benefit programs can now move forward.
Have California Trump Accounts in your 2026 tax plan? Let us model the SB 180 impact.
California Competes Tax Credit Extended Through 2034
The California Competes Tax Credit rewards businesses that create jobs. Additionally, it rewards those investing capital in California. Companies of any size or industry may apply. GO-Biz administers the program. Furthermore, GO-Biz negotiates individual agreements with each successful applicant.
How the Extension Changes Application Strategy
Awards typically run over five years. Businesses that fall short of milestones may lose credits. However, SB 180 now extends the program through 2034. As a result, companies can plan multi-year expansion with confidence. GO-Biz opens three application periods each fiscal year. Furthermore, applications compete for a fixed dollar pool.
▶ SB 180 Provisions Quick Reference
| Provision | Effective Date | Who It Affects |
|---|---|---|
| Trump Account earnings deferral | Retroactive to 2026 | California families with Trump Accounts |
| IRC Section 128 employer conformity | Retroactive to 2026 | Employers offering Trump Account contributions |
| Charitable and governmental contributions | Retroactive to 2026 | Trump Account beneficiaries |
| California Competes Tax Credit | Through 2034 tax year | Businesses hiring or investing in California |
Does This SB 180 Guidance Apply to My Situation?
Yes, if you have a Trump Account or plan to open one in California. Additionally, SB 180 applies to employers offering these contribution benefits. Families with children born between 2025 and 2028 qualify for the federal pilot program. That contribution now grows tax-deferred at the state level too. Furthermore, businesses applying for California Competes should factor the 2034 sunset into their five-year plans.
KEY TAKEAWAYS
- ›SB 180 conforms state tax treatment of Trump Accounts to federal rules retroactive to 2026.
- ›Earnings inside these accounts are now tax-deferred until distribution at the state level.
- ›California conforms to IRC Section 128 employer contribution exclusion plus charitable and governmental exclusions.
- ›California Competes Tax Credit runs through the 2034 tax year under SB 180.
- ›Review your 2026 California Trump Accounts tax planning now since the changes are retroactive.
Frequently Asked Questions
When did SB 180 take effect for Trump Accounts in California?
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Governor Newsom signed SB 180 on July 14, 2026. Additionally, the state conformity is retroactive to the beginning of the 2026 tax year. As a result, California treats Trump Account earnings the same as federal rules for all of 2026.
Are employer contributions to Trump Accounts taxable in California?
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No. SB 180 conforms California to IRC Section 128. This excludes employer contributions to an employee’s child’s Trump Account from the employee’s gross income. Furthermore, the exclusion now applies at the California level too.
What is the California Competes Tax Credit?
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The California Competes Tax Credit is a nonrefundable income tax credit administered by GO-Biz. It rewards businesses that create jobs and invest capital in California. Additionally, companies of any industry, size, or location may apply. Awards typically run over a five-year commitment period.
How long is the California Competes Tax Credit extended?
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SB 180 extends the California Competes Tax Credit for an additional five years through the 2034 tax year. As a result, businesses gain more certainty when planning multi-year hiring and capital investment. Furthermore, GO-Biz continues to hold three application periods per fiscal year.
How does GreenGrowth CPAs help with SB 180 tax planning?
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Our team advises families on Trump Account contribution strategy under SB 180. Additionally, we help employers structure benefit programs and support California Competes applications. To discuss your needs, book a free consultation with our tax team.
Make Sense of SB 180 for Your California Tax Position
GreenGrowth CPAs helps families and businesses adjust their tax planning for the retroactive SB 180 conformity rules. Additionally, we model California Competes applications under the extended timeline.
KEY NUMBERS
SB 180 Is Retroactive. Your 2026 Tax Position Just Changed.
Book a California tax review. We help you adjust your Trump Account strategy, employer benefits, and California Competes applications.
Book Your California Tax Review →
GreenGrowth CPAs · California Tax Planning Team
