Water's Edge

Since the 1980s, California’s “Water’s Edge” tax election has allowed corporations to hide their profits in offshore tax havens. This costs the state an estimated $3-4 billion in tax revenue per year. Oil and gas companies–and their allies in the Reagan administration–fought hard for Water’s Edge in the 1980s. Since then, they have earned billions by fueling climate change and poisoning California communities–and sheltering their profits overseas.

In February 2026, Assemblymember Damon Connolly introduced AB 1790, which would eliminate the Water’s Edge election. If passed, AB 1790 will help ensure that corporations pay their fair share of California taxes–providing crucial support to our schools, communities, and environmental programs.

California’s state workers are on the front lines of the climate crisis–cleaning up fires and floods; protecting our air, water, and wildlife; and addressing public health crises. AB 1790 will give our state workers the resources they need to build a green and safe California.