A.B. 1412 was enacted on October 4, 2013, in response to the recent Cutler decision, which found unconstitutional the state’s requirement that qualified small business stock exclusions/deferrals are limited to investments in California businesses. A.B. 1412 removes the active in-state requirements. California taxpayers should consider filing refund claims. However, certain provisions of A.B. 1412 could subject such claims to additional scrutiny.