clipping from an earlier post:

Your CA income isn't taxed unless more than 50% of your flight time was in California. Whether they'd make you document that, and how that would play for a reserve guy who didn't get launched every day-who knows. Next link is from the State of California tax website, so, hopefully whatever crat you wind up speaking with next week is somewhat aware of California tax laws. If not, 1031 is the pub you need to remember

http://www.ftb.ca.gov/forms/2008/08_1031.pdf

p.7 is the appropriate section