The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, and specify certain limitations and requirements with respect to the application of credits, including limitations on credits allowed with respect to disregarded entities in excess of the tax imposed on income related to those disregarded entities.
This bill would remove the above-described limitation on credits allowed with respect to disregarded entities for credits generated in taxable years beginning on or after January 1, 2023, if the credit can be assigned, as provided.
This bill would take effect immediately as a tax levy.

Statutes affected:
AB1576: 17039 RTC, 23036 RTC
02/17/23 - Introduced: 17039 RTC, 23036 RTC
04/26/23 - Amended Assembly: 17039 RTC, 23036 RTC
AB 1576: 17039 RTC, 23036 RTC