Revenue and Taxation Code — Part 4 | RTC — United States — California law | Esheria

Revenue and Taxation Code

Part 4 of 36 · provisions 601–800

This section says the act is known as the Revenue and Taxation Code.

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Starting in the 1995–96 fiscal year, county-assessed property rights or interests must be placed in a separate countywide tax rate area, and the tax rate is calculated using the rates from Section 100. This section suspends a specified California constitutional subparagraph for the 2009–10 fiscal year. This section requires the county auditor to reduce certain 2009–10 property tax apportionments, transfer the reduction amounts to a county fund, and report the calculations. It also lets the Director of Finance grant limited hardship relief, requires later state reimbursement, and allows mandamus if reimbursement is not made on time. This section sets how certain railroad property tax value and revenues must be allocated among tax rate areas, counties, school entities, and related jurisdictions. Supplemental property tax revenues for 1985–86 and later years must be apportioned using the current year’s property tax apportionment factors.

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Provisions of Revenue and Taxation Code

Showing 200 of 7,200

  1. 1614.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Generally [1601 - 1616] ( Article 1 enacted by Stats. 1939, Ch. 154. )

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    The county board clerk must keep accurate roll records and send the monthly statement of roll changes to the auditor by the second Monday of each month, unless there were no roll changes that month.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Generally [1601 - 1616] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 1614. (a) The clerk of the county board shall keep an accurate record of all changes to the roll and all orders made by the county board. No later than the second Monday of each month the clerk shall deliver the statement of all changes to the roll made by the county board during the preceding calendar month to the auditor. (b) This section does not prohibit the clerk from transmitting to the auditor changes to the roll more frequently than once per month. (c) This section shall not be construed to require the clerk to deliver the statement described in subdivision (a) for a month in which the county board has made no changes to the roll. (Amended by Stats. 2003, Ch. 199, Sec. 4. Effective January 1, 2004.)
  2. 1615.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Generally [1601 - 1616] ( Article 1 enacted by Stats. 1939, Ch. 154. )

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    A court challenge to a county board of equalization or assessment appeals board decision must be filed within six months after the board’s final determination.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Generally [1601 - 1616] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 1615. No action or proceeding shall be brought in any court on behalf of any governmental officer, agency or entity to review a decision of the county board of equalization or an assessment appeals board unless such action or proceeding is commenced within six months from the date the board makes its final determination. (Added by Stats. 1989, Ch. 481, Sec. 3.)
  3. 1616.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Generally [1601 - 1616] ( Article 1 enacted by Stats. 1939, Ch. 154. )

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    A county board may conduct hearings remotely, and if it does, it must comply with this chapter and any applicable county supervisor rules and procedures.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Generally [1601 - 1616] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 1616. (a) Nothing in this chapter or in any other law shall be construed to prohibit a county board from conducting hearings remotely. Remotely conducted hearings include, but are not limited to, the use of video, audio, and telephonic means for remote appearances; the electronic exchange and authentication of documentary evidence; e-filing and e-service; the use of remote interpreting; and the use of remote reporting and electronic recording to make the official record of an action or proceeding. (b) If a county board conducts a hearing remotely, it shall ensure compliance with the provisions of this chapter and any rules and procedures adopted by the county board of supervisors pursuant to Section 16 of Article XIII of the California Constitution. (Added by Stats. 2020, Ch. 264, Sec. 23. (AB 107) Effective September 29, 2020.)
  4. 162.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The assessor, tax collector, and auditor must charge and collect a $1 fee for preparing each listed document, unless specifically prohibited by law. A copy made by photographic process is charged at actual cost plus $1, and the fee goes into the county general fund.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 162. The assessor, tax collector, and auditor shall, except where specifically prohibited by law, charge and collect a fee of one dollar ($1) for preparing each of the following documents: (a) A certified copy of a redemption certificate. (b) A certified copy of an installment redemption receipt. (c) A certified copy of an assessment as entered on the assessment roll. The fee for providing a copy of a record or document by photographic process shall be the actual cost thereof plus the sum of one dollar ($1). The fee shall be placed in the county general fund. (Amended by Stats. 2011, Ch. 207, Sec. 1. (AB 820) Effective January 1, 2012.)
  5. 162.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The assessor, tax collector, or auditor must charge and collect a fee to cover the actual and reasonable cost of preparing a certificate of payment showing taxes paid.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 162.1. (a) The assessor, tax collector, or auditor shall charge and collect a fee to cover the actual and reasonable costs incurred by the assessor, tax collector, or auditor to prepare a certificate of payment showing taxes paid. (b) The amount of the fee shall be established by the board of supervisors of the county and shall be subject to the requirements of Chapter 12.5 (commencing with Section 54985) of Part 1 of Division 2 of Title 5 of the Government Code. (Added by Stats. 2011, Ch. 207, Sec. 2. (AB 820) Effective January 1, 2012.)
  6. 162.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    A non-county taxing agency may authorize the county recorder to record certain property-tax-related instruments, and the county recorder must comply and forward recorded deed duplicates as directed.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 162.5. Any taxing agency, including a taxing agency having its own system for the levying and collection of taxes or assessments, but excluding a county, may by ordinance or resolution of its governing body provide that the county recorder shall file, record, index, and make notations upon, written instruments pertaining to the assessment, sale, and deeding (whether to such agency or a purchaser therefrom) of property taxed or assessed by such agency in the same manner and with the same effect as provided in this division with respect to comparable instruments pertaining to property subject to county taxes, and the county recorder shall comply with such ordinance or resolution upon payment of the same fees as if the taxing agency were the county. The recorded duplicate of any deed to a taxing agency other than the State or county shall be forwarded by the county recorder to the officer designated in the ordinance or resolution. (Added by renumbering Section 162 by Stats. 1957, Ch. 155.)
  7. 1620.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    A county board of supervisors may create assessment appeals boards by ordinance.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1620. The board of supervisors of any county may by ordinance create assessment appeals boards for the county to equalize the valuation of taxable property within the county for the purpose of taxation. (Amended by Stats. 1974, Ch. 311.)
  8. 1621.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    The county board of supervisors may create as many assessment appeals boards as needed for orderly and timely handling of assessment appeals.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1621. The board of supervisors may create as many assessment appeals boards for the county as it deems necessary for the orderly and timely processing, hearing, and disposition of assessment appeals. An assessment appeals board shall be designated by number in the ordinance providing for its creation. (Amended by Stats. 2020, Ch. 57, Sec. 1. (AB 3373) Effective January 1, 2021.)
  9. 1622.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    An assessment appeals board must have three members, chosen by lot by the county superior court judge from nominees submitted by county supervisors.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1622. An assessment appeals board shall consist of three members selected by lot by the presiding judge of the superior court of the county from among those persons nominated for that purpose by the members of the county board of supervisors. Within 60 days after the adoption of the ordinance providing for the creation of assessment appeals boards, each member of the board of supervisors shall nominate not less than three nor more than five persons for appointment to the assessment appeals boards. (Amended by Stats. 1974, Ch. 180.)
  10. 1622.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    The county board of supervisors may choose by ordinance to directly appoint assessment appeals board members, and each member must be approved by majority vote.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1622.1. (a) As an alternative to the selection procedure provided in Section 1622, the county board of supervisors may, by ordinance, elect to appoint directly the members of the assessment appeals board. Approval of each member shall be by majority vote of the board of supervisors. (b) An assessment appeals board appointed pursuant to this section may consist of three or five members. If a five-member board is appointed, the board shall only act as a three-member panel designated from time to time by the clerk of the assessment appeals board. If a five-member board is appointed, the term of office of these members shall be three years except that upon the original selection of these members, the members shall be assigned terms in such a manner that the terms of no more than two offices shall expire in any one year. (Amended by Stats. 1984, Ch. 568, Sec. 1.)
  11. 1622.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    Up to two county supervisors who previously served on the county board of equalization may serve on an assessment appeals board, and their service term cannot be longer than their supervisor term.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1622.2. (a) Up to two members of a county board of supervisors who have served as a member of a county board of equalization pursuant to Section 1601 may serve on an assessment appeals board. (b) Notwithstanding Sections 1623 and 1623.1, the term of office for any member of a county board of supervisors who serves on an assessment appeals board shall not exceed his or her term of office as a member of a county board of supervisors. (Added by Stats. 1984, Ch. 567, Sec. 1. Effective July 18, 1984.)
  12. 1622.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    This section lets the clerk and the board of supervisors make temporary and alternate member assignments for assessment appeals boards, and gives alternate members the same authority as regular members when they sit.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1622.5. In any county in which two or more boards have been created and are functioning: (a) The clerk of the assessment appeals boards may assign one or more members from one board to serve temporarily as members of another board, and (b) The board of supervisors may appoint alternate members for each board. Whenever any regular member of a board is temporarily unable to act as a member of the board, an alternate member may sit on the board and shall have the same authority to act as a regular member. Where such alternate member is likewise temporarily unable to act the clerk may assign an alternate member of the same board or of any other board to act as a member of the board and such alternate member may sit on the board and shall have the same authority to act as a regular member. In any county in which one board has been created and is functioning the board of supervisors may appoint alternate members for the board. Whenever any regular member of the board is temporarily unable to act as a member of the board, an alternate member may sit on the board and shall have the same authority to act as a regular member. (Amended by Stats. 1969, Ch. 1399.)
  13. 1622.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    This section sets who may hear certain equalization applications and limits each special alternate board member to the one case in the appointing order.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1622.6. (a) (1) An application for equalization filed pursuant to Section 1603 by a person described in Section 1612.7, or an application in which a person described in Section 1612.7 represents his or her spouse, parent, or child, shall be heard before an assessment appeals board panel consisting of three special alternate assessment appeals board members appointed by order of the presiding judge of the superior court in the county in which the application is filed. (2) A special alternate assessment appeals board member may hear only the application for equalization set forth in the superior court order appointing the member. (3) A person shall be eligible for appointment as a special alternate assessment appeals board member if he or she meets the criteria and files the documentation described in subdivisions (a) and (b) of Section 1624, subject to the prohibitions described in Sections 1624.1 and 1624.2. (b) (1) Notwithstanding subdivision (a), at the discretion of the clerk of the board, the applications may be heard before a special alternate board formed pursuant to this subdivision consisting of three special alternate assessment appeals board members who are qualified and in good standing in another county in California. (2) The special alternate board may hear only the application for equalization set forth in the transmittal document prepared by the clerk of the board of the county in which the application is filed. (3) Each appeals board member on the special alternate board shall be in good standing in his or her county. A board member is in good standing if he or she is actively serving as an assessment appeals board member in his or her county. (Amended by Stats. 2009, Ch. 477, Sec. 5. (AB 824) Effective January 1, 2010.)
  14. 1623.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    This provision sets the terms for assessment appeals board members and lets members temporarily continue serving after a term ends in specified situations.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1623. (a) The term of office of members selected to serve on assessment appeals boards shall be three years beginning on the first Monday in September except that upon the original selection of members to serve on an assessment appeals board, the member first selected shall serve for a term of three years beginning on the first Monday in September following the date of the creation of the board, the second member selected shall serve for a term of two years beginning on such date, and the third member selected shall serve for a term of one year beginning on such date. (b) In the event of a vacancy on a board, the person selected to fill the vacancy shall serve for the remainder of the unexpired term. (c) Not less than 60 days prior to the expiration of the term of office of any member of an assessment appeals board and upon the occurrence of a vacancy on any such board, each member of the board of supervisors shall nominate one person for each office or vacancy to be filled. The presiding judge of the superior court shall select by lot one person from among those nominated to serve for the succeeding term on such board or to fill the vacancy as the case may be. (d) Upon expiration of the term of office of any member of an assessment appeals board, the member whose term has expired shall continue to serve until such time as a new member takes office. (e) A member whose term has expired may continue to serve for up to 60 days after the expiration of such term with respect to matters on which the assessment appeals board had commenced hearing prior to the expiration of the member’s term. (Amended by Stats. 1978, Ch. 636.)
  15. 1623.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    The board of supervisors may use an ordinance to appoint assessment appeals board members and alternates instead of the Section 1623 nomination-and-selection process, and appointees must meet the applicable eligibility requirements.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1623.1. As an alternative to the nomination and selection procedure provided in Section 1623, the board of supervisors may, by ordinance, provide that it shall appoint the members and alternates of the assessment appeals board, upon the expiration of any term of office or the occurrence of a vacancy on such board. Any person so appointed shall meet the eligibility requirements of Section 1624 or 1624.05, whichever is applicable. (Amended by Stats. 2004, Ch. 407, Sec. 1. Effective January 1, 2005.)
  16. 1624.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    A person may be nominated to an assessment appeals board only if they meet one of the listed experience or knowledge criteria, and the section applies only in counties under 200,000 population.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1624. (a) A person is not eligible for nomination for membership on an assessment appeals board unless he or she meets one of the following criteria: (1) Has a minimum of five years professional experience in this state as a certified public accountant or public accountant, a licensed real estate broker, an attorney, a property appraiser accredited by a nationally recognized professional organization, or a property appraiser certified by the Office of Real Estate Appraisers, or a property appraiser certified by the State Board of Equalization. (2) Is a person who the nominating member of the board of supervisors has reason to believe is possessed of competent knowledge of property appraisal and taxation. (b) Documentation of qualifying experience of appeals board members shall be filed with the clerk of the board. (c) This section shall apply only to an assessment appeals board in a county with a population of less than 200,000. (d) County population estimates conducted by the Department of Finance pursuant to Section 13073.5 of the Government Code shall be used in determining the population of a county for purposes of this section. (Amended by Stats. 2004, Ch. 407, Sec. 2. Effective January 1, 2005.)
  17. 1624.01.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

    Verify source ↗

    New assessment appeals board members must complete required training, and a member who misses the deadline must finish within 60 days after clerk notice or is deemed resigned.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1624.01. (a) On and after January 1, 2001, any person newly selected for membership on, or newly appointed to be a member of, an assessment appeals board shall complete the training described in subdivision (a) of Section 1624.02 prior to the commencement of his or her term on the board or as soon as reasonably possible within one year thereafter. (b) A member of an assessment appeals board who does not complete the training required by this section in the time permitted shall complete that training within 60 days of the date of the notice by the clerk advising the member that his or her failure to complete the training constitutes resignation by operation of law. If the member fails to comply within 60 days of the notice by the clerk, the member shall be deemed to have resigned his or her position on the board. Notwithstanding the provisions of this section, a board member may continue to retain his or her position on the board in order to complete all appeal hearings to which the member is assigned and which commenced prior to the date of resignation pursuant to this subdivision. (Amended by Stats. 1999, Ch. 942, Sec. 2. Effective January 1, 2000.)
  18. 1624.02.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

    Verify source ↗

    Newly selected or appointed assessment appeals board members must complete training, and State Board training must be regional.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1624.02. (a) Every person newly selected for membership on or newly appointed to be a member of, an assessment appeals board shall successfully complete a course of training conducted by either the State Board of Equalization or by the county at county option. Training shall include, but not be limited to, an overview of the assessment process, elements in the conduct of assessment appeal hearings, and important developments in case and statutory law and administrative rules. The curriculum for the course of training provided by the State Board of Equalization shall be developed in consultation with county boards of supervisors, administrators of assessment appeals boards, assessors, and local property taxpayer representatives. The curriculum for the course of training provided by counties shall be developed in consultation with the State Board of Equalization, assessors, and local property taxpayer representatives and subject to final approval by the State Board of Equalization. Training by the State Board of Equalization shall be conducted regionally. For purposes of this section, the term “successfully complete” shall include full-time attendance at the course of training and a person’s receiving a certificate of completion given by the entity conducting the training at the conclusion of the course of training. (b) There shall be no charge to counties for training conducted by the State Board of Equalization pursuant to this section. (Amended by Stats. 1999, Ch. 942, Sec. 3. Effective January 1, 2000.)
  19. 1624.05.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

    Verify source ↗

    This section limits who may be nominated to an assessment appeals board and requires qualifying experience documentation to be filed with the board clerk.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1624.05. (a) A person shall not be eligible for nomination for membership on an assessment appeals board unless they have a minimum of five years’ professional experience in this state as one of the following: certified public accountant or public accountant, licensed real estate broker, attorney, property appraiser accredited by a nationally recognized professional organization, property appraiser certified by the Bureau of Real Estate Appraisers, or property appraiser certified by the State Board of Equalization. (b) Notwithstanding subdivision (a), a person shall be eligible for nomination for membership on an assessment appeals board if, at the time of the nomination, they are a current member of an assessment appeals board. (c) Notwithstanding subdivision (a), a person shall also be eligible for nomination for membership on an assessment appeals board for the County of Los Angeles if the person has a minimum of five years’ professional experience in this state in a real estate field, including, but not limited to, business accounting and taxation, land use and urban planning, real estate development or investment analysis, and real estate banking or financing. (d) Documentation of qualifying experience of appeals board members shall be filed with the clerk of the board. (e) This section shall apply only to an assessment appeals board in a county with a population of 200,000 or more. (f) County population estimates conducted by the Department of Finance pursuant to Section 13073.5 of the Government Code shall be used in determining the population of a county for purposes of this section. (Amended by Stats. 2021, Ch. 418, Sec. 1. (AB 1203) Effective January 1, 2022.)
  20. 1624.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

    Verify source ↗

    A person is not qualified to serve on an assessment appeals board if they were an employee of an assessor’s office within the previous three years. Los Angeles County’s board of supervisors may lower that restriction by resolution, but not below one year, and this subdivision is operative only until January 1, 2028.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1624.1. (a) A person shall not be qualified to be a member of an assessment appeals board if the person has, within the three years immediately preceding their appointment to that board, been an employee of an assessor’s office. (b) (1) Notwithstanding subdivision (a), the board of supervisors for the County of Los Angeles may reduce, by resolution, the restriction described in subdivision (a) to no less than one year. (2) This subdivision shall remain operative only until January 1, 2028, and is inoperative as of that date. (Amended by Stats. 2021, Ch. 418, Sec. 2. (AB 1203) Effective January 1, 2022.)
  21. 1624.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

    Verify source ↗

    A member of an assessment appeals board must not knowingly take part in an appeal proceeding if they have a conflict that could reasonably affect their impartial judgment.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1624.2. No member of an assessment appeals board shall knowingly participate in any assessment appeal proceeding wherein the member has an interest in either the subject matter of or a party to the proceeding of such nature that it could reasonably be expected to influence the impartiality of his judgment in the proceeding. Violation of this section shall be cause for removal under Section 1625 of this code. (Added by Stats. 1967, Ch. 352.)
  22. 1624.4.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    A party affected by an equalization proceeding, the assessor, or their agent may file a written objection to a board member’s hearing of the matter, and the board member may respond. The statement and any answer must be served, transmitted, verified by oath, and filed on timing rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1624.4. (a) The party affected by an equalization proceeding or his or her agent, or the assessor, may make and file with the clerk of the assessment appeals board in which the proceeding is pending a written statement objecting to the hearing of a matter before a member of the board, and setting forth the facts constituting the ground of the disqualification of the member. Copies of the written statement shall be served by the presenting party on each party in the proceeding and on the board member alleged in the statement to be disqualified. (b) Within 10 days after the filing of the statement, or within 10 days after the service of the statement as provided in subdivision (a), whichever is later, the board member alleged therein to be disqualified may file with the clerk his or her consent in writing that the action or proceeding be tried before another member, or may file with the clerk his or her written answer admitting or denying any or all of the allegations contained in the statement and setting forth any additional fact or facts material or relevant to the question of his or her disqualification. The clerk shall transmit a copy of the member’s consent or answer to each party who shall have appeared in the proceeding. Every statement and every answer shall be verified by oath in the manner prescribed by Section 446 of the Code of Civil Procedure for the verification of pleadings. The statement of a party objecting to the member on the ground of the member’s disqualification, shall be presented at the earliest practicable opportunity, after discovery of the facts constituting the ground of the member’s disqualification, and in any event before the commencement of the hearing of any issue of fact in the proceeding before the member. (c) No member of the board, who shall deny his or her own disqualification, shall hear or pass upon the question of the disqualification. The question of the member’s disqualification shall be heard and determined by some other member agreed upon by the parties who have appeared in the proceeding, or, in the event of their failing to agree, by a member assigned to act by the clerk. Within five days after the expiration of the time allowed by this section for the member to answer, the clerk shall assign a member, not disqualified, to hear and determine the matter of the disqualification. (Amended by Stats. 1996, Ch. 1087, Sec. 23. Effective January 1, 1997.)
  23. 1625.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

    Verify source ↗

    A board of supervisors may remove an assessment appeals board member for cause.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1625. Any member of an assessment appeals board may be removed for cause by the board of supervisors. (Amended by Stats. 1974, Ch. 180.)
  24. 1626.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

    Verify source ↗

    County boards of supervisors may discontinue assessment appeals boards, block new ones until the next September date, and change the number of boards later subject to a minimum of one.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1626. The board of supervisors of any county which has created one or more assessment appeals boards may discontinue all of said boards effective on the first Monday in September, subject to any such board continuing to function until matters pending before it have been disposed of. If all of such boards have been discontinued, no new board or boards may be created to function prior to the next succeeding first Monday in September. Notwithstanding the foregoing, the board of supervisors of any such county may increase, or may decrease to not less than one, the number of such boards, effective from and after the next succeeding first Monday in September, provided that any board so discontinued shall continue to function until matters pending before it have been disposed of. (Amended by Stats. 1978, Ch. 636.)
  25. 1626.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

    Verify source ↗

    A county board of supervisors may increase the number of assessment appeals boards by ordinance, starting on the first Monday in October, if the county already has at least one such board.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1626.1. Notwithstanding Section 1623, the board of supervisors of any county which has one or more assessment appeals boards in existence pursuant to this article may by ordinance increase the number of such boards effective from and after the first Monday in October and such boards shall remain in existence until discontinued under the provisions of Section 1626, but in no event shall the term of office of any member of the board exceed three years. Each term of office shall expire in a different calendar year. (Added by Stats. 1975, Ch. 733.)
  26. 1628.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

    Verify source ↗

    The clerk of the board of supervisors must serve as clerk for the assessment appeals boards, keep a record of their proceedings, and perform the same duties required for county board of equalization proceedings.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1628. The clerk of the board of supervisors shall be clerk of the assessment appeals boards and keep a record of their proceedings. He shall perform the same duties in connection with their proceedings as he is required by law to perform in connection with the proceedings of the county board of equalization. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 147.)
  27. 163.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    Entities that receive revenue from certain assessment liens must annually notify the assessor and provide specified lien information.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 163. Any entity that receives revenue that is derived from payments with respect to an assessment lien created pursuant to the Improvement Bond Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code), the Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code), or the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) shall annually notify the assessor of all of the following: (a) The lien amount on each subject parcel at the time the lien was created. (b) In the case in which a lien has been completely satisfied, the date and amount of the payment in satisfaction of the lien, and the identity of the party that made that payment. (c) The amount of the principal balance of the lien on each subject parcel. (Added by Stats. 1995, Ch. 527, Sec. 4. Effective January 1, 1996.)
  28. 163.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    This section says certain property-tax rules in the division apply to property tied to a taxing agency, generally in the same way they apply to county taxes, except for counties.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 163.5. The provisions of this division relating to actions and proceedings for quieting title to property, and holding any tax deed to be void, shall apply to property assessed, sold, or deeded for the taxes or assessments of any taxing agency, including a taxing agency having its own system for the levying and collection of taxes or assessments, but excluding a county, the same, or as nearly the same as possible, as such provisions apply to property assessed, sold, or deeded for county taxes. For this purpose when used in such provisions: (a) “State” or “county” means the taxing agency. (b) “Controller” means the governing body of the taxing agency. (c) “District attorney” means the attorney or legal counsel of the taxing agency. Any reference in such provisions to all or any portion of this division shall be deemed for the purposes of this section to refer to comparable provisions of the law, charter, or ordinance pursuant to which the taxing agency involved levies and collects taxes or assessments on property. (Added by renumbering Section 163 by Stats. 1957, Ch. 155.)
  29. 1630.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. )

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    A qualifying real property owner may ask the local agency’s governing body for a written statement about keeping a land-use restriction in place, and that body may grant or deny the request.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.5. Equalization by Assessment Appeals Board [1620 - 1630] ( Heading of Article 1.5 amended by Stats. 1974, Ch. 180. ) ## 1630. (a) Any real property owner the use of whose land is subject to an enforceable restriction placed upon it by a local agency may apply to the governing body of the local agency for a written statement declaring the present intention of the governing body to refrain from removing or modifying any such restriction in the predictable future. (b) The written statement of intention may be granted or denied by the governing body at its discretion. A reasonable fee not to exceed ten dollars ($10) may be charged for each such statement. (c) The written statement may be presented to the county board of equalization as evidence that a restriction on the use of the taxpayer’s land exists and that such restriction should be considered in assessing the value of the land. (d) The written statement shall constitute a rebuttable presumption that the governing body does not intend to remove or modify the restriction in the predictable future. (Added by Stats. 1966, 1st Ex. Sess., Ch. 147.)
  30. 1636.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

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    The county board of supervisors may appoint assessment hearing officers or contract for an administrative law judge to hear assessment protests and make recommendations.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1636. The county board of supervisors may appoint one or more assessment hearing officers or contract with the Office of Administrative Hearings for the services of an administrative law judge pursuant to Chapter 14 (commencing with Section 27720) of Part 3 of Division 2 of Title 3 of the Government Code to conduct hearings on any assessment protests filed under Article 1 (commencing with Section 1601) of this chapter and to make recommendations to the county board of equalization or assessment appeals board concerning the protests. Only persons meeting the qualifications prescribed by Section 1624 may be appointed as an assessment hearing officer. (Amended by Stats. 1995, Ch. 938, Sec. 86. Effective January 1, 1996. Operative July 1, 1997, by Sec. 98 of Ch. 938.)
  31. 1637.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

    Verify source ↗

    Assessment hearing officers may conduct hearings only when the stated application and property conditions are met, and county supervisors may require the assessor’s assent in some higher-value cases.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1637. (a) Hearings before an assessment hearing officer shall be conducted pursuant to the provisions of Article 1 (commencing with Section 1601) governing equalization proceedings by a county board of equalization or an assessment appeals board. The assessment hearing officer may conduct hearings on applications where all of the following apply: (1) The applicant is the assessee and has filed an application under Section 1603. (2) For counties in which the board of supervisors has not adopted the provisions of Section 1641.1, the total assessed value of the property under consideration, as shown on the current assessment roll, does not exceed five hundred thousand dollars ($500,000); or the property under consideration is a single-family dwelling, condominium or cooperative, or a multiple-family dwelling of four units or less regardless of value. (3) The applicant has requested that the hearing be held before an assessment hearing officer. (b) In addition to subdivision (a), the board of supervisors may, by resolution, require the assent of the assessor to hearings before an assessment hearing officer in all cases in which the total assessed value on the current roll of the property under consideration exceeds a sum set by the resolution. However, that requirement shall not apply in cases involving owner-occupied residential property. (Amended by Stats. 1995, Ch. 164, Sec. 3. Effective July 24, 1995.)
  32. 1638.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

    Verify source ↗

    The applicant may be represented at the hearing and can offer evidence. If the applicant is represented by an attorney, the assessor may also be represented by an attorney, and the assessor and staff can offer evidence.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1638. The applicant may be represented in the hearing of the application and shall have the right to offer evidence. The assessor may be represented in the hearing by an attorney if the applicant is represented by an attorney and one or more members of his staff, and the assessor and members of his staff shall have the right to offer evidence. The hearing shall be conducted in accordance with Section 1609. The hearing and disposition of applications shall be conducted in an informal manner. (Amended by Stats. 1984, Ch. 678, Sec. 34.)
  33. 1639.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

    Verify source ↗

    The hearing officer must conduct the hearing, prepare a summary report and recommendation on the assessment protest, and send the report and recommendation to the clerk of the board of supervisors.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1639. The hearing officer shall conduct the hearing and shall prepare a summary report of the proceedings together with his recommendation on the assessment protest. The hearing officer shall transmit his report and recommendation to the clerk of the board of supervisors. The report and recommendation shall not constitute precedent for future proceedings initiated by the applicant or other applicants. (Added by Stats. 1970, Ch. 797.)
  34. 164.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    A chief accounting officer of a taxing agency other than the State may audit certain other taxing-agency accounts, and interested taxing agencies may agree to accept one agency’s audit report when more than one agency has an interest in the collections.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 164. The chief accounting officer of each taxing agency other than the State, may examine and audit the accounts of any other taxing agency, other than the State, charged under any provision of this code with the apportionment of the proceeds of collections made on behalf of both agencies. In the event more than one taxing agency has an interest in such collections the governing bodies of the interested taxing agencies may enter into an agreement to accept the report on the audit of the chief accounting officer of one of such interested taxing agencies. As used in this section, “chief accounting officer” means as to a county the auditor thereof, as to a city the auditor thereof, as to an irrigation district the secretary of the board of directors thereof, and as to any other taxing agency the officer designated as its chief accounting officer by the governing body thereof. (Added by renumbering Section 163 by Stats. 1957, Ch. 1565.)
  35. 1640.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

    Verify source ↗

    The clerk must send the hearing officer’s report and recommendation in writing to the protesting party or the party’s agent, and also to the county board or assessment appeals board.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1640. The clerk shall transmit in writing at the conclusion of the hearing or by mail to the protesting party or his or her agent and shall transmit to the county board of equalization or assessment appeals board the hearing officer’s report and recommendation on the assessment protest. The protesting party shall be informed that the county board of equalization is bound by the recommendation of the assessment hearing officer. (Amended by Stats. 1994, Ch. 705, Sec. 14. Effective January 1, 1995.)
  36. 1640.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

    Verify source ↗

    The clerk must send the hearing officer’s report and recommendation on an assessment protest to the protesting party (or agent) and to the county board of equalization or assessment appeals board. The protesting party must also be told that the board is not bound by the recommendation and that the protesting party or assessor is entitled to a full hearing.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1640.1. (a) The clerk shall transmit in writing at the conclusion of the hearing or by mail to the protesting party or his or her agent and shall transmit to the county board of equalization or assessment appeals board, the hearing officer’s report and recommendation on the assessment protest. The protesting party shall be informed that the county board of equalization or the assessment appeals board is not bound by the recommendation of the assessment hearing officer and that he or she or the assessor is entitled to a full hearing before the county board or the assessment appeals board. (b) The provision of this section shall supersede the provisions of Section 1640 in those counties in which the board of supervisors by resolution adopts the provisions of this section. (Amended by Stats. 1994, Ch. 705, Sec. 15. Effective January 1, 1995.)
  37. 1641.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

    Verify source ↗

    When an assessment hearing officer makes a recommendation, the county board of equalization or assessment appeals board must set the property’s assessed value at the recommended amount.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1641. Upon the recommendation of an assessment hearing officer the county board of equalization or assessment appeals board shall establish the assessed value for the property at the value recommended by the hearing officer. (Repealed and added by Stats. 1980, Ch. 1081, Sec. 15. Effective September 26, 1980.)
  38. 1641.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

    Verify source ↗

    After an assessment hearing officer issues a recommendation, the protesting party or assessor may ask the board to accept or reject it, and the board must act without further testimony.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1641.1. (a) Upon being notified of the recommendation of an assessment hearing officer, the protesting party or the assessor may request the county board of equalization or assessment appeals board to accept or reject the recommendation of the assessment hearing officer. The assessor may request the board to reject the recommendation of the assessment hearing officer. The county board of equalization or assessment appeals board shall, without further testimony, do either of the following: (1) Accept the recommendation and change the assessed value in accordance with Section 1610.8. (2) Reject the recommendation and set the application for reduction for hearing by the local board of equalization. If a request is not filed with the county board of equalization or assessment appeals board, the protesting party or the assessor may, within 14 days after mailing of the hearing officer’s report and recommendation, make application for a hearing before the county board or the assessment appeals board, and the application shall be set for hearing by the county board or the assessment appeals board. The board may consider, but shall not be bound by, the recommendation of the assessment hearing officer. (b) The provisions of this section shall supersede the provisions of Section 1641 in those counties in which the board of supervisors by resolution adopts the provisions of this section. (Amended by Stats. 1983, Ch. 1224, Sec. 14.)
  39. 1641.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

    Verify source ↗

    If a taxpayer or agent objects or seeks a hearing officer recommendation within 90 days after the Section 1604 two-year period expires, the county board gets an extra 90 days to act.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1641.2. Notwithstanding the provisions of Section 1604, if within 90 days of the expiration of the two-year period specified in Section 1604 within which a county board is required to hear evidence and make a final determination on an application for reduction in assessment, a taxpayer or his or her agent objects to an assessment appeals board member pursuant to Section 1624.4 or makes application for a hearing officer’s recommendation to be heard before the county board pursuant to Section 1641.1, the two-year period shall be extended by 90 days. (Added by Stats. 1995, Ch. 958, Sec. 1. Effective October 16, 1995.)
  40. 1641.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. )

    Verify source ↗

    A county board of supervisors may adopt a resolution making a hearing officer’s assessment appeal decision the county’s final administrative decision.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.7. Assessment Hearing Officers [1636 - 1641.5] ( Article 1.7 added by Stats. 1970, Ch. 797. ) ## 1641.5. (a) Notwithstanding any other provision of law, the board of supervisors of a county in which a hearing officer exercises jurisdiction pursuant to subdivision (a) of Section 1637 may, by a resolution enacted by a majority of the entire membership of that board, provide that the decision of a hearing officer on an assessment appeal application constitutes the final administrative decision of the county board of equalization or county assessment appeals board on that application without any further action by the county board of equalization or county assessment appeals board. (b) In a county that adopts the resolution described in subdivision (a), that resolution supersedes Sections 1640 and 1641. (Added by Stats. 2005, Ch. 264, Sec. 10. Effective January 1, 2006.)
  41. 1642.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. )

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    An eligible assessee may request a hearing on unitary mining or mineral property located in more than one county, and the county and hearing-officer bodies must form and manage the panel under stated timing and quorum rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. ) ## 1642. (a) An assessee of mining or mineral property located in more than one county and alleged to be unitary property, may, within the time specified in Sections 1603 and 1605, request a hearing before a panel comprising one assessment hearing officer from each county in which that unitary property is located by filing in each county concerned a multicounty application for reduction of assessment. The board of supervisors of each county in which the unitary property is located shall appoint one assessment hearing officer pursuant to Section 1636. In the event that the unitary property is located in an even number of counties, the assessment hearing officers shall designate one additional assessment hearing officer who shall be included in the panel. If the assessment hearing officers fail to designate the additional hearing officer within 60 days after the application is filed, the Office of Administrative Hearings shall designate the additional assessment hearing officer. (b) Hearings before the panel of assessment hearing officers shall be conducted pursuant to Article 1 (commencing with Section 1601) governing equalization proceedings by county boards of equalization. All counties in which the unitary property is located shall be parties to the hearing. Hearings shall be held at the place or places as a majority of the panel shall designate. (c) Section 1638 shall apply to the hearings by the panel. (d) The presence of all members of the panel shall be necessary to constitute a quorum. (Added by Stats. 1988, Ch. 1480, Sec. 1. Applicable July 1, 1989, by Sec. 3 of Ch. 1480.)
  42. 1643.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. )

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    The panel of hearing officers must hear evidence, decide whether the property is unitary, determine its value and county apportionment if it is, and prepare a summary report and recommendation.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. ) ## 1643. (a) The panel of hearing officers shall conduct the hearing and receive evidence to determine (1) if the property concerned is unitary and (2) if it is unitary, the value of the unitary property as a whole and the portion thereof allocable to each county. The panel shall prepare a summary report of the proceedings, and make a recommendation concerning the total value of the entire unitary property and the apportionment of that value among the counties concerned. Any determination by a majority of the hearing officers shall constitute a determination by the panel. (b) If the panel determines that the property concerned is not unitary, the application shall be referred back to each of the counties concerned to be treated as an application for reduction of assessment filed in each county. (Added by Stats. 1988, Ch. 1480, Sec. 1. Applicable July 1, 1989, by Sec. 3 of Ch. 1480.)
  43. 1644.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. )

    Verify source ↗

    The hearing officers’ report and recommendation must be sent to each county clerk, and each county clerk must then send a copy to the protesting party, the assessor, and the county’s equalization or assessment appeals board within 14 days after receipt.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. ) ## 1644. The report and recommendation of the panel of hearing officers shall be transmitted to the county clerk of each of the counties concerned. Each county clerk shall transmit a copy of the report and recommendation to the protesting party, the assessor, and to the board of equalization or the assessment appeals board of the county concerned within 14 days of the receipt thereof. (Added by Stats. 1988, Ch. 1480, Sec. 1. Applicable July 1, 1989, by Sec. 3 of Ch. 1480.)
  44. 1645.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. )

    Verify source ↗

    This section requires the county board to act on a hearing officers’ recommendation after a written request, and sets a default action deadline if no request is made.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. ) ## 1645. (a) If, within 30 days following receipt of the report and recommendation of the panel of hearing officers by the county board of equalization or assessment appeals board of a concerned county, the assessor of that county or the assessee submits a written request to the board to reject the recommendation of the panel of hearing officers with respect to property located in that county, the board shall, without further testimony, do either of the following: (1) Accept the recommendation of the panel and change the assessed values for that county in accordance with that recommendation. (2) Reject the recommendation of the panel and set the request for hearing before the board as an application for reduction of assessment. (b) In the event that neither the assessor nor the assessee makes a request in accordance with subdivision (a) within the prescribed 30-day period, the board shall, not later than 60 days following its receipt of the report and recommendation of the panel of hearing officers, without further testimony, take the action specified in paragraph (1) or (2) of subdivision (a). (c) In any hearing set by the board pursuant to this section, there shall be a rebuttable presumption that the recommendation of the panel of hearing officers is correct. (Added by Stats. 1988, Ch. 1480, Sec. 1. Applicable July 1, 1989, by Sec. 3 of Ch. 1480.)
  45. 1645.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. )

    Verify source ↗

    This section defines “unitary property” for this article as one or more contiguous parcels of real property operated as an economic unit.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1.9. Hearings Before Assessment Hearing Officers for Unitary Property Located in More Than One County [1642 - 1645.5] ( Article 1.9 added by Stats. 1988, Ch. 1480, Sec. 1. ) ## 1645.5. For purposes of this article, the term “unitary property” shall mean one or more parcels of real property that are contiguous and are operated as an economic unit. (Added by Stats. 1988, Ch. 1480, Sec. 1. Applicable July 1, 1989, by Sec. 3 of Ch. 1480.)
  46. 1646.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The auditor must total the local roll valuations and record the totals, with special handling for machine-prepared rolls.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 1646. As soon as the auditor receives the local roll from the assessor, he shall add up the valuations on it and enter on the roll the total valuation of each kind of property and the total valuation of all property; provided, however, that if the assessment roll is a machine-prepared roll the prescribed computations and entries may be made and entered upon a newly prepared roll. (a) In counties of the first class, after the board of supervisors has acted under Section 2151, the auditor shall perform the duties specified in Section 2152; provided that if the assessment roll is a machine-prepared roll, the prescribed computations and entries may be made and entered upon a newly prepared roll without incorporating any of the adjustments authorized by the local board of equalization. (b) In all other counties, after the board of supervisors has acted under Section 2151, the auditor shall perform the duties specified in Section 2152; provided that if the assessment roll is a machine-prepared roll, the prescribed computations and entries may be made and entered upon a newly prepared roll. (Amended by Stats. 1974, Ch. 180.)
  47. 1646.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The county auditor must promptly correct the roll after receiving the clerk’s statement prepared under Section 1614.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 1646.1. Upon receiving a statement from the clerk prepared under Section 1614, the auditor shall forthwith correct the roll to reflect the changes made by the county board. (Added by Stats. 1966, 1st Ex. Sess., Ch. 147.)
  48. 1647.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The auditor must prepare duplicate valuation statements by August 15 each year and prepare new statements within 60 days after the assessment year ends.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 1647. Annually, on or before August 15th, the auditor shall prepare duplicate valuation statements, verified by his attached affidavit, from the local roll as corrected for changes made during July. Within 60 days after the close of the assessment year, he shall prepare new statements to reflect all corrections of the roll. (Amended by Stats. 1973, Ch. 710.)
  49. 1648.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Valuation statements must include whatever information the board requires.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 1648. The valuation statements shall show such information as the board may require. (Amended by Stats. 1939, Ch. 1008.)
  50. 1649.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The auditor must send one valuation statement to the controller and one to the board once the valuation statements are prepared.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 1649. As soon as the valuation statements are prepared, the auditor shall transmit one to the controller and one to the board. (Enacted by Stats. 1939, Ch. 154.)
  51. 1650.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    An auditor who fails to transmit the required valuation statements must forfeit $1,000 to the State.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 1650. Every auditor who fails to transmit the valuation statements as required forfeits one thousand dollars to the State, to be recovered in an action brought by the Attorney General in the name of the board. (Enacted by Stats. 1939, Ch. 154.)
  52. 1651.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The auditor must transmit the unsecured roll to the tax collector immediately after finishing duties under Section 1646.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 3. EQUALIZATION [1601 - 2125] ( Part 3 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Equalization by County Board of Equalization [1601 - 1721] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Duties of Auditor [1646 - 1651] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 1651. Immediately upon completion of his duties under Section 1646, the auditor shall transmit the unsecured roll to the tax collector. (Amended by Stats. 1978, Ch. 1126.)
  53. 166.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    A taxpayer filing that is mailed properly by the specified date is treated as timely, and the section applies broadly to filings required by a taxing agency, subject to listed exceptions.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 166. (a) Whenever a taxpayer is required to file any statement, affidavit, application, or any other paper or document with a taxing agency by a specified time on a specified date, such filing shall be deemed to be within the specified period if it is sent by United States mail, properly addressed with postage prepaid, and bears a post office cancellation mark of the specified date, or earlier within the specified period, stamped on the envelope, or on itself, or if proof satisfactory to the agency establishes that the mailing occurred on the specified date, or earlier within the specified period. (b) The provisions of this section shall supersede any contrary special provision of this division unless such special provision specifically provides that this section shall not be applicable. (c) The provisions of this section are applicable to any filing required to be made by ordinance, rule, or regulation of a taxing agency. (d) Any statement or affidavit made by a taxpayer asserting such a timely filing must be made within one year of the deadline applicable to the original filing; provided, however, that this subsection shall not apply to any statement or affidavit asserting the timely filing of a property statement or to any statement made by the taxpayer in connection with an escape assessment imposed pursuant to Section 531. (e) It is the intent of the Legislature that this section be liberally construed in favor of the taxpayer and be applicable to all filings relating to property taxation which are required to be made by a taxpayer by a specified time on a specified date. (Amended by Stats. 1970, Ch. 748.)
  54. 167.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    This section creates a rebuttable presumption in favor of a taxpayer or assessee in certain property-tax administrative hearings, if required information was supplied to the assessor, but it does not apply in specified escape-assessment appeals.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 167. (a) Notwithstanding any other provision of law to the contrary, and except as provided in subdivision (b), there shall be a rebuttable presumption affecting the burden of proof in favor of the taxpayer or assessee who has supplied all information as required by law to the assessor in any administrative hearing involving the imposition of a tax on an owner-occupied single-family dwelling, the assessment of an owner-occupied single-family dwelling pursuant to this division, or the appeal of an escape assessment. (b) Notwithstanding subdivision (a), the rebuttable presumption described in that subdivision shall not apply in the case of an administrative hearing with respect to the appeal of an escape assessment resulting from a taxpayer’s failure either to file with the assessor a change in ownership statement or a business property statement, or to obtain a permit for new construction. (c) For the purposes of this section, an owner-occupied single-family dwelling means a single-family dwelling that satisfies both of the following: (1) The dwelling is the owner’s principal place of residence. (2) The dwelling qualifies for a homeowners’ property tax exemption. (Amended by Stats. 2011, Ch. 220, Sec. 1. (AB 711) Effective January 1, 2012.)
  55. 16700.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. )

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    This section names this part as the “Generation Skipping Transfer Tax Law.”

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. ) ## 16700. This part is known as the “Generation Skipping Transfer Tax Law.” (Added by Stats. 1977, Ch. 1079.)
  56. 16701.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The definitions in this chapter control how this part is interpreted, unless the context requires otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. ) ## 16701. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part. (Added by Stats. 1977, Ch. 1079.)
  57. 16702.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    This section defines “generation-skipping transfer” for this tax chapter.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. ) ## 16702. “Generation-skipping transfer” includes every transfer subject to the tax imposed under Chapter 13 of Subtitle B of the Internal Revenue Code of 1986, as amended, where the original transferor is a resident of the State of California at the date of original transfer, or the property transferred is real or personal property in California. (Amended by Stats. 1987, Ch. 1138, Sec. 2. Effective September 25, 1987.)
  58. 16703.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    “Original transferor” means a grantor, donor, trustor, or testator who makes a transfer by grant, gift, trust, or will that results in a federal generation skipping transfer tax.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. ) ## 16703. “Original transferor” means any grantor, donor, trustor or testator who by grant, gift, trust or will makes a transfer of real or personal property that results in a federal generation skipping transfer tax under applicable provisions of the Internal Revenue Code. (Added by Stats. 1977, Ch. 1079.)
  59. 16704.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    This section defines “Federal generation-skipping transfer tax” as the tax imposed by Chapter 13 of Subtitle B of the Internal Revenue Code of 1986, as amended.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 1. Definitions [16700 - 16704] ( Chapter 1 added by Stats. 1977, Ch. 1079. ) ## 16704. “Federal generation-skipping transfer tax” means the tax imposed by Chapter 13 of Subtitle B of the Internal Revenue Code of 1986, as amended. (Amended by Stats. 1987, Ch. 1138, Sec. 3. Effective September 25, 1987.)
  60. 16710.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Tax Imposed [16710- 16710.] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    A tax is imposed on every generation-skipping transfer, generally equal to the state credit allowed under federal law.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Tax Imposed [16710- 16710.] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16710. (a) A tax is hereby imposed upon every generation-skipping transfer in an amount equal to the amount allowable as a credit for state generation-skipping transfer taxes under Section 2604 of the Internal Revenue Code. (b) If any of the property transferred is real property in another state or personal property having a business situs in another state which requires the payment of a tax for which credit is received against the federal generation-skipping transfer tax, any tax due pursuant to subdivision (a) of this section shall be reduced by an amount which bears the same ratio to the total state tax credit allowable for federal generation-skipping transfer tax purposes as the value of such property taxable in such other state bears to the value of the gross generation-skipping transfer for federal generation skipping transfer tax purposes. (Amended by Stats. 1987, Ch. 1138, Sec. 4. Effective September 25, 1987.)
  61. 16720.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Returns [16720 - 16722] ( Article 2 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    People required to file a federal generation-skipping transfer return must file a return with the State Controller by the federal filing deadline and attach a duplicate copy of the federal return.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Returns [16720 - 16722] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16720. Every person required to file a return reporting a generation skipping transfer under applicable federal statute and regulations shall file a return with the State Controller on or before the last day prescribed for filing the federal return. There shall be attached to the return filed with the Controller a duplicate copy of the federal return. (Added by Stats. 1977, Ch. 1079.)
  62. 16721.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Returns [16720 - 16722] ( Article 2 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    A return must include the information and form the Controller prescribes, state the tax due, and include or be verified by a written declaration under penalty of perjury.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Returns [16720 - 16722] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16721. The return shall contain such information and be in such form as the Controller may prescribe and shall state the amount of tax due under the provisions of this part. The return shall contain, or be verified by, a written declaration that it is made under the penalties of perjury. (Added by Stats. 1977, Ch. 1079.)
  63. 16722.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Returns [16720 - 16722] ( Article 2 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    If federal authorities change the federal generation skipping transfer tax after a duplicate return is filed, an amended return must be filed with the State Controller showing the changes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Returns [16720 - 16722] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16722. If, after the filing of a duplicate return, the federal authorities shall increase or decrease the amount of the federal generation skipping transfer tax, an amended return shall be filed with the State Controller showing all changes made in the original return and the amount of increase or decrease in the federal generation skipping transfer tax. (Added by Stats. 1977, Ch. 1079.)
  64. 16730.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The Controller must determine a deficiency when the disclosed tax is less than the tax found on examination, subject to timing limits and a special federal-audit rule.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. ) ## 16730. In a case not involving a false or fraudulent return or failure to file a return, if the Controller determines at any time after the tax is due, but not later than four years after the return is filed, that the tax disclosed in any return required to be filed by this part is less than the tax disclosed by his examination, a deficiency shall be determined; provided that in a case where the federal generation skipping transfer tax has been increased upon audit of the federal return, the determination may be made at any time within one year after the federal generation skipping transfer tax becomes final. For the purposes of this section, a return filed before the last day prescribed by law for filing such return shall be considered as filed on such last day. (Added by Stats. 1977, Ch. 1079.)
  65. 16731.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    If a return is false or fraudulent, or no return is filed, the Controller may determine the tax at any time.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. ) ## 16731. In the case of a false or fraudulent return or failure to file a return, the Controller may determine the tax at any time. (Added by Stats. 1977, Ch. 1079.)
  66. 16732.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    If a deficiency was determined in the wrong amount, the Controller may set it aside or issue an amended determination within three years.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. ) ## 16732. In any case in which a deficiency has been determined in an erroneous amount, the Controller may, within three years after the erroneous determination was made, set aside the determination or issue an amended determination in the correct amount. (Added by Stats. 1977, Ch. 1079.)
  67. 16733.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The Controller must notify the relevant taxpayer of a determined deficiency, and any related penalty for failure to file or report a transfer, by personal service or mail.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. ) ## 16733. The Controller shall give notice of the deficiency determined, together with any penalty for failure to file a return or to show any transfer in the return filed, by personal service or by mail to the person filing the return at the address stated in the return, or, if no return is filed, to the person liable for the tax. Copies of the notice of deficiency may in like manner be given to such other persons as the Controller deems advisable. (Added by Stats. 1977, Ch. 1079.)
  68. 16734.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    A person liable for the tax may sue the state in the superior court to modify a deficiency determination if the person claims the deficiency amount was wrong.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 2. Imposition of the Tax [16710 - 16734] ( Chapter 2 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Deficiency Determination [16730 - 16734] ( Article 3 added by Stats. 1977, Ch. 1079. ) ## 16734. In any case in which it is claimed that a deficiency has been determined in an erroneous amount, any person who is liable for the tax may, within three years after the determination was made, bring an action against the state in the superior court having jurisdiction to have the tax modified in whole or in part. (Added by Stats. 1977, Ch. 1079.)
  69. 16750.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16750 - 16753] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The person liable for the federal generation skipping transfer tax is also liable for the tax imposed by this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16750 - 16753] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16750. The person liable for payment of the federal generation skipping transfer tax shall be liable for the tax imposed by this part. (Added by Stats. 1977, Ch. 1079.)
  70. 16751.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16750 - 16753] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The tax imposed by this part becomes due when there is a taxable distribution or a taxable termination.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16750 - 16753] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16751. The tax imposed by this part is due upon a taxable distribution or a taxable termination as determined under applicable provisions of the federal generation skipping transfer tax. (Added by Stats. 1977, Ch. 1079.)
  71. 16752.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16750 - 16753] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The tax becomes delinquent after the last day allowed to file the return for the generation skipping transfer.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16750 - 16753] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16752. The tax becomes delinquent from and after the last day allowed for filing a return for the generation skipping transfer. (Added by Stats. 1977, Ch. 1079.)
  72. 16753.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16750 - 16753] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The tax must be paid to the State Controller by remittance payable to the State Treasurer.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16750 - 16753] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16753. The tax shall be paid to the State Controller by remittance payable to the State Treasurer. (Added by Stats. 1977, Ch. 1079.)
  73. 16760.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Interest and Penalties [16760 - 16761] ( Article 2 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    If the tax is not paid before it becomes delinquent, interest starts to run and continues until payment.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Interest and Penalties [16760 - 16761] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16760. If the tax is not paid before it becomes delinquent, it bears interest thereafter and until it is paid at the same rate per annum as provided in Section 6621(a)(2) of the Internal Revenue Code, compounded daily. (Amended by Stats. 2000, Ch. 363, Sec. 8. Effective September 8, 2000. Operative January 1, 2001, by Sec. 11 of Ch. 363.)
  74. 16761.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Interest and Penalties [16760 - 16761] ( Article 2 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    Tax payments must be applied first to any interest due, and only then to the remaining tax balance.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 3. Payment of Tax [16750 - 16761] ( Chapter 3 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Interest and Penalties [16760 - 16761] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16761. Every payment on the tax imposed by this part is applied, first, to any interest due on the tax, and then, if there is any balance, to the tax itself. (Added by Stats. 1977, Ch. 1079.)
  75. 168.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The tax collector may use a facsimile signature instead of a manual signature on required documents if the manual signature is filed with the Secretary of State and certified under oath.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 168. Any document required in this division to be executed by the tax collector may be executed with a facsimile signature in lieu of a manual signature if the manual signature is filed with the Secretary of State and is certified under oath by the tax collector. Upon compliance with this section, the facsimile signature shall have the same legal effect as the manual signature of the tax collector. (Added by Stats. 1982, Ch. 431, Sec. 1.)
  76. 168.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    This section lets a taxpayer use an electronic signature on a State Board of Equalization form if the county assessor allows electronic submission and the required certification and authentication steps are met.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 168.1. (a) Notwithstanding subdivision (b) of Section 16.5 of the Government Code, if a county assessor authorizes the submission of a State Board of Equalization form by the use of electronic media pursuant to subdivision (k) of Section 441, a taxpayer may execute that form by electronic signature in lieu of a manual, facsimile, or other signature if both of the following requirements are met: (1) The electronic signature is accompanied by a form in the signature block that states that the taxpayer certifies or declares under penalty of perjury that all the information, including accompanying statements or materials, in the document is true, correct, and complete to the best of the taxpayer’s knowledge. (2) The electronic signature is authenticated in a manner that is approved by the State Board of Equalization. (b) If a county assessor authorizes the submission of a State Board of Equalization form by the use of electronic media and a taxpayer chooses to execute that form by the use of electronic signature pursuant to subdivision (a), a county assessor shall accept the electronic signature pursuant to this section. The county assessor may require payment of a fee in an amount equal to the reasonable costs associated with accepting an electronic signature. (c) Every county shall adopt any necessary ordinances, resolutions, or other procedures to give effect to this section. (d) Upon compliance with this section, the electronic signature shall have the same legal effect as the manual, facsimile, or other signature of the taxpayer. (e) For purposes of this section, “electronic signature” has the same meaning as that term is defined in subdivision (h) of Section 1633.2 of the Civil Code. (Added by Stats. 2024, Ch. 217, Sec. 1. (AB 1879) Effective January 1, 2025.)
  77. 168.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Some documents that would otherwise need county clerk acknowledgment at no charge may instead be acknowledged by a notary public or other county official, also at no charge.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 168.5. Any document required in this division to be acknowledged by the county clerk at no charge may be acknowledged by a notary public or other county official pursuant to Section 1181 of the Civil Code, at no charge. (Added by Stats. 1999, Ch. 941, Sec. 8. Effective January 1, 2000.)
  78. 16800.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 4. Collection of Tax [16800 - 16830] ( Chapter 4 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Suit for Tax [16800- 16800.] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The state may bring a civil action to enforce tax claims and tax liens under this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 4. Collection of Tax [16800 - 16830] ( Chapter 4 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Suit for Tax [16800- 16800.] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16800. The state may enforce its claim for any tax imposed by this part and enforce the lien of the tax by a civil action in any court of competent jurisdiction against any person liable for the tax or against any property subject to the lien. (Added by Stats. 1977, Ch. 1079.)
  79. 16810.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 4. Collection of Tax [16800 - 16830] ( Chapter 4 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Lien of Tax [16810- 16810.] ( Article 2 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The tax imposed by this part becomes a lien on the transferred property.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 4. Collection of Tax [16800 - 16830] ( Chapter 4 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Lien of Tax [16810- 16810.] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16810. The tax imposed by this part is a lien in the manner prescribed in Section 13610 upon the property transferred from the time the generation skipping transfer is made and until the expiration of 10 years from and after the time a deficiency determination is issued pursuant to the provisions of this part or until the tax is paid, whichever is earlier. (Amended by Stats. 1987, Ch. 894, Sec. 2.)
  80. 16820.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 4. Collection of Tax [16800 - 16830] ( Chapter 4 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Writ of Execution [16820 - 16821] ( Article 3 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    If a tax under this part is delinquent, the Controller may obtain a writ of execution to enforce a judgment related to that tax.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 4. Collection of Tax [16800 - 16830] ( Chapter 4 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Writ of Execution [16820 - 16821] ( Article 3 added by Stats. 1977, Ch. 1079. ) ## 16820. At any time after a tax imposed by this part is delinquent, the Controller may have a writ of execution issued for the enforcement of any judgment rendered pursuant to this part in respect to the tax. (Added by Stats. 1977, Ch. 1079.)
  81. 16821.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 4. Collection of Tax [16800 - 16830] ( Chapter 4 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Writ of Execution [16820 - 16821] ( Article 3 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    A writ of execution must be used against the property of a person liable for the tax, or against property subject to the tax lien.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 4. Collection of Tax [16800 - 16830] ( Chapter 4 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Writ of Execution [16820 - 16821] ( Article 3 added by Stats. 1977, Ch. 1079. ) ## 16821. The writ shall be executed against any property of any person liable for the tax, or against any property subject to the lien of the tax. (Added by Stats. 1977, Ch. 1079.)
  82. 16850.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. When Allowable [16850 - 16852] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    If the Controller finds a tax overpayment, the overpaid amount must be refunded to the taxpayer.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. When Allowable [16850 - 16852] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16850. If the Controller finds that there has been an overpayment of tax by a taxpayer for any reason, the amount of the overpayment shall be refunded to the taxpayer. (Added by Stats. 1977, Ch. 1079.)
  83. 16851.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. When Allowable [16850 - 16852] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    Refunds are barred after the stated time limits unless a claim is filed in time or the Controller makes the refund.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. When Allowable [16850 - 16852] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16851. No refund shall be allowed or made after four years from the last day prescribed for filing the return or after one year from the date of the overpayment, whichever period expires the later, unless before the expiration of such period a claim therefor is filed by the taxpayer, or unless before the expiration of such period the Controller makes a refund. A claim for refund may be filed in such form as the Controller may prescribe, and the Controller shall allow or deny the claim, in whole or in part, and mail a notice of such determination to the claimant at the address stated on the claim. (Added by Stats. 1977, Ch. 1079.)
  84. 16852.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. When Allowable [16850 - 16852] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    A person who paid tax under this part and later wins a judgment showing the tax was more than legally due may get a refund of the excess paid, unless the claimant is an assignee.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. When Allowable [16850 - 16852] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16852. Any person who has paid any tax imposed by this part which later is determined by judgment to have been in excess of the amount legally due, or an heir, the executor of the will, or the administrator of the estate of any such person, but not his assignee, is entitled to a refund in the amount of the excess paid within one year after the judgment becomes final. (Added by Stats. 1977, Ch. 1079.)
  85. 16860.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Suit for Refund [16860 - 16862] ( Article 2 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    A person who paid the tax may sue the state in superior court for a refund, subject to the stated filing deadlines.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Suit for Refund [16860 - 16862] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16860. Within four years from the last date prescribed for filing the return or within one year from the date the tax was paid, or within 90 days after a determination under Section 16851 is issued, whichever is later, any person who has paid the tax may bring an action against the state in the superior court having jurisdiction to have the tax refunded, in whole or in part. (Added by Stats. 1977, Ch. 1079.)
  86. 16861.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Suit for Refund [16860 - 16862] ( Article 2 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    Process in an action directed to the state must be served on the Controller.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Suit for Refund [16860 - 16862] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16861. Process in the action directed to the state shall be served on the Controller. (Added by Stats. 1977, Ch. 1079.)
  87. 16862.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Suit for Refund [16860 - 16862] ( Article 2 added by Stats. 1977, Ch. 1079. )

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    After a hearing, the court reviews the Controller’s tax appraisement and determination and may modify or confirm it by judgment.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Suit for Refund [16860 - 16862] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16862. After a hearing in which the Controller shall represent the state, the court shall review the Controller’s appraisement and determination of tax, and, as the case may require, shall by judgment modify or confirm the appraisement or determination in whole or in part. (Added by Stats. 1977, Ch. 1079.)
  88. 16870.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Interest on Refunds [16870- 16870.] ( Article 3 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    Interest must be allowed and paid on any overpayment of tax under this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 5. Refunds [16850 - 16870] ( Chapter 5 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 3. Interest on Refunds [16870- 16870.] ( Article 3 added by Stats. 1977, Ch. 1079. ) ## 16870. Interest shall be allowed and paid upon any overpayment of tax due under this part in the same manner as provided in Section 6621(a)(1) and 6622 of the Internal Revenue Code. (Amended by Stats. 2000, Ch. 363, Sec. 9. Effective September 8, 2000. Operative January 1, 2001, by Sec. 11 of Ch. 363.)
  89. 16880.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 6. Court Jurisdiction and Procedure Generally [16880 - 16890] ( Chapter 6 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Court Jurisdiction [16880 - 16881] ( Article 1 added by Stats. 1977, Ch. 1079. )

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    The superior court in the relevant county has jurisdiction to hear and decide questions about any tax imposed by this part on the gift.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 6. Court Jurisdiction and Procedure Generally [16880 - 16890] ( Chapter 6 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Court Jurisdiction [16880 - 16881] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16880. The superior court of the county in which a transferor resident of this state resided at the date of any generation skipping transfer made by him has jurisdiction to hear and determine all questions relative to any tax imposed by this part on the gift. (Added by Stats. 1977, Ch. 1079.)
  90. 16881.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 6. Court Jurisdiction and Procedure Generally [16880 - 16890] ( Chapter 6 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Court Jurisdiction [16880 - 16881] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    This section gives the superior court in the relevant county jurisdiction over questions about the generation skipping transfer tax, based on where the transferor’s property is located.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 6. Court Jurisdiction and Procedure Generally [16880 - 16890] ( Chapter 6 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Court Jurisdiction [16880 - 16881] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16881. In the case of a transferor who was not a resident of this state at the date of any generation skipping transfer made by him, the superior court of the county in which any of the transferor’s real property is situated, or, if he has no real property in this state, the superior court of the county in which any of his personal property is situated, has jurisdiction to hear and determine all questions relative to any tax imposed by this part. If the transferor has property in more than one county, the superior court of any such county whose jurisdiction is first invoked has exclusive jurisdiction. (Added by Stats. 1977, Ch. 1079.)
  91. 16890.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 6. Court Jurisdiction and Procedure Generally [16880 - 16890] ( Chapter 6 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Court Procedure Generally [16890- 16890.] ( Article 2 added by Stats. 1977, Ch. 1079. )

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    Unless this part says otherwise, applicable Code of Civil Procedure rules on judgments, new trials, appeals, attachments, and execution of judgments govern proceedings under this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 6. Court Jurisdiction and Procedure Generally [16880 - 16890] ( Chapter 6 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Court Procedure Generally [16890- 16890.] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16890. Except as otherwise provided in this part, the provisions of the Code of Civil Procedure relative to judgments, new trials, appeals, attachments and execution of judgments, so far as applicable, govern all proceedings under this part. (Added by Stats. 1977, Ch. 1079.)
  92. 169.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The board must encourage uniform statewide appraisal and assessment practices.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Administrative Provisions [155 - 169] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 169. The board shall encourage uniform statewide appraisal and assessment practices. (Added by Stats. 1993, Ch. 387, Sec. 1. Effective January 1, 1994.)
  93. 16900.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The Controller administers this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16900. This part is administered by the Controller. (Amended by Stats. 1983, Ch. 407, Sec. 5.)
  94. 16901.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. )

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    The Controller may hire assistants, including attorneys, when needed to properly administer this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16901. The Controller may employ such assistants, including attorneys, as may from time to time be necessary for the proper administration of this part. (Added by Stats. 1977, Ch. 1079.)
  95. 16902.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. )

    Verify source ↗

    The Controller may make and enforce rules and regulations for administering and enforcing this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16902. The Controller may make and enforce rules and regulations relating to the administration and enforcement of this part, and may prescribe the extent, if any, to which any ruling or regulation shall be applied without retroactive effect. (Added by Stats. 1977, Ch. 1079.)
  96. 16903.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. )

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    The Franchise Tax Board must cooperate in enforcing this part by reporting certain income changes and other relevant information to the Controller.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16903. Under rules and regulations upon which the Controller and Franchise Tax Board may agree, the Franchise Tax Board shall cooperate in the enforcement of this part by reporting to the Controller any changes in the gross or net income of any person, or any other information obtained in the enforcement of any act administered by the Franchise Tax Board which may in any way indicate that a transfer has been made which is taxable under this part. (Added by Stats. 1977, Ch. 1079.)
  97. 16904.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. )

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    The State Board of Equalization must cooperate in enforcing this part by reporting certain potentially taxable transfer information to the Controller.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16904. Under rules and regulations upon which the Controller and State Board of Equalization may agree, the State Board of Equalization shall cooperate in the enforcement of this part by reporting to the Controller any information obtained in the enforcement of any act administered by the State Board of Equalization which may in any way indicate that a transfer has been made which is taxable under this part. (Added by Stats. 1977, Ch. 1079.)
  98. 16905.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. )

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    The Controller may appear for the state in any generation skipping transfer tax matter before any court.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 1. Generally [16900 - 16905] ( Article 1 added by Stats. 1977, Ch. 1079. ) ## 16905. The Controller on his own motion may appear in behalf of the state in any and all generation skipping transfer tax matters before any court. (Added by Stats. 1977, Ch. 1079.)
  99. 16910.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Inspection of Records [16910 - 16911] ( Article 2 added by Stats. 1977, Ch. 1079. )

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    The Controller and the Controller’s employees must keep certain information and records confidential, and may not disclose them except when needed to enforce this part or when this article permits it.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Inspection of Records [16910 - 16911] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16910. All information and records acquired by the Controller or any of his employees are confidential in nature, and, except insofar as may be necessary for the enforcement of this part or as may be permitted by this article, shall not be disclosed by any of them. Except insofar as may be necessary for the enforcement of this part or as may be permitted by this article, any former or incumbent Controller or employee of the Controller who discloses any information acquired by any inspection or examination made pursuant to this article is guilty of a felony, and upon conviction shall be imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code. (Amended by Stats. 2011, Ch. 15, Sec. 570. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
  100. 16911.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Inspection of Records [16910 - 16911] ( Article 2 added by Stats. 1977, Ch. 1079. )

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    The Controller may let certain tax officials examine generation skipping transfer tax records, subject to rules and regulations the Controller prescribes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 7. Administration [16900 - 16911] ( Chapter 7 added by Stats. 1977, Ch. 1079. ) ## ARTICLE 2. Inspection of Records [16910 - 16911] ( Article 2 added by Stats. 1977, Ch. 1079. ) ## 16911. The Controller may allow any local, state, or federal official charged with the administration of any tax law to examine his generation skipping transfer tax records under such rules and regulations as he may prescribe. (Added by Stats. 1977, Ch. 1079.)
  101. 16950.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 8. Disposition of Proceeds [16950- 16950.] ( Chapter 8 added by Stats. 1977, Ch. 1079. )

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    Money due under this part must be paid to the Controller by remittance payable to the State Treasurer.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 9.5. GENERATION SKIPPING TRANSFER TAX [16700 - 16950] ( Part 9.5 added by Stats. 1977, Ch. 1079. ) ## CHAPTER 8. Disposition of Proceeds [16950- 16950.] ( Chapter 8 added by Stats. 1977, Ch. 1079. ) ## 16950. All money due under this part shall be paid to the Controller by remittance payable to the State Treasurer. The amounts received shall be deposited, after clearance of remittance, in the State Treasury to the credit of the Estate Tax Fund. (Amended by Stats. 1983, Ch. 407, Sec. 6.)
  102. 17.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. )

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    This section says that “oath” includes affirmation and written declarations signed under penalties of perjury.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. ) ## 17. “Oath” includes affirmation and written declarations signed under the penalties of perjury. (Amended by Stats. 1957, Ch. 323.)
  103. 170.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.5. Disaster Relief [170 - 171.5] ( Chapter 2.5 added by Stats. 1979, Ch. 242. )

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    Local officials may set up a property tax reassessment process for property damaged or destroyed without the owner’s fault, and county assessors must carry out the reassessment and related notices and roll updates when the section applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.5. Disaster Relief [170 - 171.5] ( Chapter 2.5 added by Stats. 1979, Ch. 242. ) ## 170. (a) Notwithstanding any other law, the board of supervisors, by ordinance, may provide that every assessee of any taxable property, or any person liable for the taxes thereon, whose property was damaged or destroyed without the assessee’s or liable person’s fault, may apply for reassessment of that property as provided in this section. The ordinance may also specify that the assessor shall have the discretion to determine the appropriate date of damage and may initiate the reassessment where the assessor determines that within the preceding 12 months taxable property located in the county was damaged or destroyed. To be eligible for reassessment the damage or destruction to the property shall have been caused by any of the following: (1) A major misfortune or calamity, in an area or region subsequently proclaimed by the Governor to be in a state of disaster, if that property was damaged or destroyed by the major misfortune or calamity that caused the Governor to proclaim the area or region to be in a state of emergency, pursuant to Section 8625 of the Government Code, or a state of disaster. As used in this paragraph, “damage” includes a diminution in the value of property as a result of restricted access to the property where that restricted access was caused by the major misfortune or calamity. (2) A misfortune or calamity. (3) A misfortune or calamity that, with respect to a possessory interest in land owned by the state or federal government, has caused the permit or other right to enter upon the land to be suspended or restricted. As used in this paragraph, “misfortune or calamity” includes a drought condition such as existed in this state in 1976 and 1977. The application for reassessment may be filed within the time specified in the ordinance or within 12 months of the misfortune or calamity, whichever is later, by delivering to the assessor a written application requesting reassessment showing the condition and value, if any, of the property immediately after the damage or destruction, and the dollar amount of the damage. The application shall be executed under penalty of perjury, or if executed outside the State of California, verified by affidavit. An ordinance may be made applicable to a major misfortune or calamity specified in paragraph (1) or to any misfortune or calamity specified in paragraph (2), or to both, as the board of supervisors determines. An ordinance shall not be made applicable to a misfortune or calamity specified in paragraph (3), unless an ordinance making paragraph (2) applicable is operative in the county. The ordinance may specify a period of time within which the ordinance shall be effective, and, if no period of time is specified, it shall remain in effect until repealed. (b) Upon receiving a proper application, the assessor shall appraise the property and determine separately the full cash value of land, improvements and personalty immediately before and after the damage or destruction. If the sum of the full cash values of the land, improvements and personalty before the damage or destruction exceeds the sum of the values after the damage by ten thousand dollars ($10,000) or more, the assessor shall also separately determine the percentage reductions in value of land, improvements and personalty due to the damage or destruction. The assessor shall reduce the values appearing on the assessment roll by the percentages of damage or destruction computed pursuant to this subdivision, and the taxes due on the property shall be adjusted as provided in subdivision (e). However, the amount of the reduction shall not exceed the actual loss. (c) (1) As used in this subdivision, “board” means either the county board of supervisors acting as the county board of equalization, or an assessment appeals board established by the county board of supervisors in accordance with Section 1620, as applicable. (2) The assessor shall notify the applicant in writing of the amount of the proposed reassessment. The notice shall state that the applicant may appeal the proposed reassessment to the board within six months of the date of mailing the notice. If an appeal is requested within the six-month period, the board shall hear and decide the matter as if the proposed reassessment had been entered on the roll as an assessment made outside the regular assessment period. The decision of the board regarding the damaged value of the property shall be final, provided that a decision of the board regarding any reassessment made pursuant to this section shall create no presumption as regards the value of the affected property subsequent to the date of the damage. (3) Those reassessed values resulting from reductions in full cash value of amounts, as determined above, shall be forwarded to the auditor by the assessor or the clerk of the board, as the case may be. The auditor shall enter the reassessed values on the roll. After being entered on the roll, those reassessed values shall not be subject to review, except by a court of competent jurisdiction. (d) (1) If no application is made and the assessor determines that within the preceding 12 months a property has suffered damage caused by misfortune or calamity that may qualify the property owner for relief under an ordinance adopted under this section, the assessor shall provide the last known owner of the property with an application for reassessment. The property owner shall file the completed application within 12 months after the occurrence of that damage. Upon receipt of a properly completed, timely filed application, the property shall be reassessed in the same manner as required in subdivision (b). (2) This subdivision does not apply where the assessor initiated reassessment as provided in subdivision (a) or (l). (e) The tax rate fixed for property on the roll on which the property so reassessed appeared at the time of the misfortune or calamity, shall be applied to the amount of the reassessment as determined in accordance with this section and the assessee shall be liable for: (1) a prorated portion of the taxes that would have been due on the property for the current fiscal year had the misfortune or calamity not occurred, to be determined on the basis of the number of months in the current fiscal year prior to the misfortune or calamity; plus, (2) a proration of the tax due on the property as reassessed in its damaged or destroyed condition, to be determined on the basis of the number of months in the fiscal year after the damage or destruction, including the month in which the damage was incurred. For purposes of applying the preceding calculation in prorating supplemental taxes, the term “fiscal year” means that portion of the tax year used to determine the adjusted amount of taxes due pursuant to subdivision (b) of Section 75.41. If the damage or destruction occurred after January 1 and before the beginning of the next fiscal year, the reassessment shall be utilized to determine the tax liability for the next fiscal year. However, if the property is fully restored during the next fiscal year, taxes due for that year shall be prorated based on the number of months in the year before and after the completion of restoration. (f) Any tax paid in excess of the total tax due shall be refunded to the taxpayer pursuant to Chapter 5 (commencing with Section 5096) of Part 9, as an erroneously collected tax or by order of the board of supervisors without the necessity of a claim being filed pursuant to Chapter 5. (g) The assessed value of the property in its damaged condition, as determined pursuant to subdivision (b) compounded annually by the inflation factor specified in subdivision (a) of Section 51, shall be the taxable value of the property until it is restored, repaired, reconstructed or other provisions of the law require the establishment of a new base year value. If partial reconstruction, restoration, or repair has occurred on any subsequent lien date, the taxable value shall be increased by an amount determined by multiplying the difference between its factored base year value immediately before the calamity and its assessed value in its damaged condition by the percentage of the repair, reconstruction, or restoration completed on that lien date. (h) (1) When the property is fully repaired, restored, or reconstructed, the assessor shall make an additional assessment or assessments in accordance with subparagraph (A) or (B) upon completion of the repair, restoration, or reconstruction: (A) If the completion of the repair, restoration, or reconstruction occurs on or after January 1, but on or before May 31, then there shall be two additional assessments. The first additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll. The second additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value to be enrolled on the roll being prepared. (B) If the completion of the repair, restoration, or reconstruction occurs on or after June 1, but before the succeeding January 1, then the additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll. (2) On the lien date following completion of the repair, restoration, or reconstruction, the assessor shall enroll the new taxable value of the property as of that lien date. (3) For purposes of this subdivision, “new taxable value” shall mean the lesser of the property’s (A) full cash value, or (B) factored base year value or its factored base year value as adjusted pursuant to subdivision (c) of Section 70. (i) The assessor may apply Chapter 3.5 (commencing with Section 75) of Part 0.5 in implementing this section, to the extent that chapter is consistent with this section. (j) This section applies to all counties, whether operating under a charter or under the general laws of this state. (k) Any ordinance in effect pursuant to former Section 155.1, 155.13, or 155.14 shall remain in effect according to its terms as if that ordinance was adopted pursuant to this section, subject to the limitations of subdivision (b). (l) When the assessor does not have the general authority pursuant to subdivision (a) to initiate reassessments, if no application is made and the assessor determines that within the preceding 12 months a property has suffered damage caused by misfortune or calamity, that may qualify the property owner for relief under an ordinance adopted under this section, the assessor, with the approval of the board of supervisors, may reassess the particular property for which approval was granted as provided in subdivision (b) and notify the last known owner of the property of the reassessment. (m) Notwithstanding subdivision (a), in the case of property damaged or destroyed by the 2025 Palisades Fire, Eaton Fire, Hurst Fire, Lidia Fire, Sunset Fire, or Woodley Fire, or the 2024 Mountain Fire or Franklin Fire, for which the Governor proclaimed a state of emergency, the application for reassessment may be filed within the time specified in the ordinance or within 24 months of the misfortune or calamity, whichever is later. (Amended by Stats. 2025, Ch. 549, Sec. 2. (SB 663) Effective October 10, 2025.)
  104. 170.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.5. Disaster Relief [170 - 171.5] ( Chapter 2.5 added by Stats. 1979, Ch. 242. )

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    Properties within five miles of the Chiquita Canyon Landfill must be reassessed to reflect value loss from the landfill event, and the assessor must notify the taxpayer of any assessment change.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.5. Disaster Relief [170 - 171.5] ( Chapter 2.5 added by Stats. 1979, Ch. 242. ) ## 170.1. (a) Notwithstanding any law, as authorized by subdivision (b) of Section 2 of Article XIII A of the California Constitution and paragraph (2) of subdivision (a) of Section 51, each property located within a five-mile radius of the center of the Chiquita Canyon Landfill in the County of Los Angeles shall be reassessed so that the full cash value base of the property reflects any decline in value of the property arising from the Chiquita Canyon elevated temperature landfill event. (b) Reassessments pursuant to this section shall be retroactive to the January 1, 2022, lien date. Following reassessment, the assessor shall send notice of the assessment value change to the taxpayer. The notice shall state both the amount of the assessment value change and, if property taxes were paid at the higher assessment value, that a refund claim may be filed with the auditor-controller pursuant to Chapter 5 (commencing with Section 5096) of Part 9. (c) For purposes of this subdivision, “Chiquita Canyon elevated temperature landfill event” means the elevated temperature landfill event that occurred beneath the Chiquita Canyon Landfill in the County of Los Angeles. (Added by Stats. 2025, Ch. 174, Sec. 1. (AB 985) Effective October 1, 2025.)
  105. 17001.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This part may be cited as the Personal Income Tax Law.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17001. This part is known and may be cited as the “Personal Income Tax Law.” (Repealed and added by Stats. 1955, Ch. 939.)
  106. 17002.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    Definitions in this chapter control how this part is interpreted, unless the context requires otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17002. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part. (Repealed and added by Stats. 1955, Ch. 939.)
  107. 17003.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines “Franchise Tax Board” and “Board.”

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17003. “Franchise Tax Board” means the Franchise Tax Board described in Part 10, Division 3, Title 2 of the Government Code. “Board” means the State Board of Equalization. (Repealed and added by Stats. 1955, Ch. 939.)
  108. 17004.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines “taxpayer” to include certain individuals and entities subject to tax under this part, as well as any partnership.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17004. “Taxpayer” includes any individual, fiduciary, estate, or trust subject to any tax imposed by this part or any partnership. (Amended by Stats. 1996, Ch. 952, Sec. 2. Effective January 1, 1997.)
  109. 17005.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines “individual” as a natural person.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17005. “Individual” means a natural person. (Repealed and added by Stats. 1955, Ch. 939.)
  110. 17006.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    “Fiduciary” is defined to include certain fiduciaries such as guardians, trustees, executors, administrators, receivers, conservators, and others acting in a fiduciary capacity.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17006. “Fiduciary” means a guardian, trustee, executor, administrator, receiver, conservator, or any person, whether individual or corporate, acting in any fiduciary capacity for any person, estate or trust. (Repealed and added by Stats. 1955, Ch. 939.)
  111. 17007.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines “person” to include individuals, fiduciaries, partnerships, limited liability companies, and corporations.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17007. “Person” includes individuals, fiduciaries, partnerships, limited liability companies, and corporations. (Amended by Stats. 1994, Ch. 1200, Sec. 51. Effective September 30, 1994.)
  112. 17008.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines “partnership” and “partner,” and says a person must be recognized as a partner for income purposes if they own a capital interest in a partnership where capital is a material income-producing factor.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17008. “Partnership” includes a syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this part, a trust or estate or a corporation. “Partner” includes a member in such a syndicate, group, pool, joint venture, or organization. A person shall be recognized as a partner for income purposes if he owns a capital interest in a partnership in which capital is a material income-producing factor, whether or not such interest was derived by purchase or gift from any other person. (Repealed and added by Stats. 1955, Ch. 939.)
  113. 17008.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section makes IRC Section 7704 apply, with exceptions, to certain publicly traded partnerships treated as corporations.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17008.5. Section 7704 of the Internal Revenue Code, relating to certain publicly traded partnerships treated as corporations, shall apply, except as otherwise provided. (a) Section 7704(a) of the Internal Revenue Code shall not apply to an electing 1987 partnership, as defined in Section 23038.5, which is subject to the tax imposed by Section 23038.5. (b) The amendment made to this section by Chapter 611 of the Statutes of 1997 shall apply to taxable years beginning on or after January 1, 1998. (c) Section 7704(d) of the Internal Revenue Code, relating to qualifying income, shall apply, except as otherwise provided, without regard to taxable year to the same extent as applicable for federal income tax purposes. (d) The amendment to this section by the act amending this subdivision shall apply to taxable years beginning on or after January 1, 2010. (Amended by Stats. 2010, Ch. 14, Sec. 1. (SB 401) Effective January 1, 2011. Applicable from January 1, 2010, as provided in subd. (d).)
  114. 17009.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines “corporation” to include several kinds of entities, including joint stock companies, certain associations, insurance companies, and some trusts.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17009. “Corporation” includes joint stock companies or associations (including nonprofit associations that perform services, borrow money or own property, and business trusts or other business entities taxable as a corporation under regulations of the Franchise Tax Board) and insurance companies. “Corporation” also includes a trust organized and operated exclusively for purposes contained in Section 23701d. (Amended by Stats. 1997, Ch. 608, Sec. 1. Effective October 3, 1997.)
  115. 17010.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “taxable year” for personal income tax purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17010. “Taxable year” means the calendar year or the fiscal year upon the basis of which the taxable income is computed under this part. If no fiscal year has been established, “taxable year” means the calendar year. “Taxable year” means, in the case of a return made for a fractional part of a year under this part or under regulations prescribed by the Franchise Tax Board, the period for which the return is made. (Repealed and added by Stats. 1955, Ch. 939.)
  116. 17011.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    “Fiscal year” means a 12-month accounting period ending on the last day of any month other than December.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17011. “Fiscal year” means an accounting period of 12 months ending on the last day of any month other than December. (Repealed and added by Stats. 1955, Ch. 939.)
  117. 17012.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    “Paid or incurred” and “paid or accrued” are interpreted based on the accounting method used to compute taxable income under this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17012. “Paid or incurred” and “paid or accrued” shall be construed according to the method of accounting upon the basis of which the taxable income is computed under this part. (Repealed and added by Stats. 1955, Ch. 939.)
  118. 17014.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines when an individual is a California resident for personal income tax purposes, including temporary absence and certain 546-day out-of-state employment absences.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17014. (a) “Resident” includes: (1) Every individual who is in this state for other than a temporary or transitory purpose. (2) Every individual domiciled in this state who is outside the state for a temporary or transitory purpose. (b) Any individual (and spouse) who is domiciled in this state shall be considered outside this state for a temporary or transitory purpose while that individual: (1) Holds an elective office of the government of the United States, or (2) Is employed on the staff of an elective officer in the legislative branch of the government of the United States as described in paragraph (1), or (3) Holds an appointive office in the executive branch of the government of the United States (other than the armed forces of the United States or career appointees in the United States Foreign Service) if the appointment to that office was by the President of the United States and subject to confirmation by the Senate of the United States and whose tenure of office is at the pleasure of the President of the United States. (c) Any individual who is a resident of this state continues to be a resident even though temporarily absent from the state. (d) For any taxable year beginning on or after January 1, 1994, any individual domiciled in this state who is absent from the state for an uninterrupted period of at least 546 consecutive days under an employment-related contract shall be considered outside this state for other than a temporary or transitory purpose. (1)For purposes of this subdivision, returns to this state, totaling in the aggregate not more than 45 days during a taxable year, shall be disregarded. (2)This subdivision shall not apply to any individual, including any spouse described in paragraph (3), who has income from stocks, bonds, notes, or other intangible personal property in excess of two hundred thousand dollars ($200,000) in any taxable year in which the employment-related contract is in effect. In the case of an individual who is married, this paragraph shall be applied to the income of each spouse separately. (3)Any spouse who is absent from the state for an uninterrupted period of at least 546 consecutive days to accompany a spouse who, under this subdivision, is considered outside this state for other than a temporary or transitory purpose shall, for purposes of this subdivision, also be considered outside this state for other than a temporary or transitory purpose. (4) This subdivision shall not apply to any individual if the principal purpose of the individual’s absence from this state is to avoid any tax imposed by this part. (Amended by Stats. 1994, Ch. 1243, Sec. 4. Effective September 30, 1994.)
  119. 17015.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “nonresident” as every individual other than a resident.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17015. “Nonresident” means every individual other than a resident. (Repealed and added by Stats. 1955, Ch. 939.)
  120. 17015.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    “Part-year resident” means a taxpayer who is both a resident and a nonresident of this state during the same taxable year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17015.5. For purposes of Part 10.2 (commencing with Section 18401) and this part, the term “part-year resident” means a taxpayer who meets both of the following conditions during the same taxable year. (a) Is a resident of this state during a portion of the taxable year. (b) Is a nonresident of this state during a portion of the taxable year. (Added by Stats. 2001, Ch. 920, Sec. 1. Effective January 1, 2002.)
  121. 17016.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    An individual who spends more than nine months of the taxable year in this State is presumed to be a resident.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17016. Every individual who spends in the aggregate more than nine months of the taxable year within this State shall be presumed to be a resident. The presumption may be overcome by satisfactory evidence that the individual is in the State for a temporary or transitory purpose. (Repealed and added by Stats. 1955, Ch. 939.)
  122. 17017.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “United States” for geographical use to include the states, the District of Columbia, and U.S. possessions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17017. “United States,” when used in a geographical sense, includes the states, the District of Columbia, and the possessions of the United States. (Amended by Stats. 1961, Ch. 537.)
  123. 17018.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    For this section, “State” includes the District of Columbia and the U.S. possessions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17018. “State” includes the District of Columbia, and the possessions of the United States. (Amended by Stats. 1961, Ch. 537.)
  124. 17019.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    “Foreign country” means any jurisdiction outside the United States.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17019. “Foreign country” means any jurisdiction other than one embraced within the United States. (Repealed and added by Stats. 1955, Ch. 939.)
  125. 17020.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    “Trade or business” includes performing the functions of a public office.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020. “Trade or business” includes the performance of the functions of a public office. (Repealed and added by Stats. 1955, Ch. 939.)
  126. 17020.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “substituted basis property” by reference to Section 7701(a)(42) of the Internal Revenue Code.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.1. For purposes of this part, the term “substituted basis property” has the same meaning given that term by Section 7701(a)(42) of the Internal Revenue Code. (Added by Stats. 1987, Ch. 1138, Sec. 5. Effective September 25, 1987. Applicable to taxable years beginning on or after January 1, 1987, by Sec. 189 of Ch. 1138.)
  127. 17020.11.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    Section 7701(h) of the Internal Revenue Code, about motor vehicle operating leases, applies here unless another provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.11. Section 7701(h) of the Internal Revenue Code, relating to motor vehicle operating leases, applies, except as otherwise provided. (Amended by Stats. 2003, Ch. 185, Sec. 6. Effective January 1, 2004.)
  128. 17020.12.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    Employee status for this part is determined under Labor Code Article 1.5, unless another rule applies; the Internal Revenue Code’s employee definition also applies except as otherwise provided.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.12. (a) For the purposes of this part, except as otherwise provided, the determination of whether an individual is an employee shall be governed by Article 1.5 (commencing with Section 2775) of Chapter 2 of Division 3 of the Labor Code. (b) Section 7701(a)(20) of the Internal Revenue Code, relating to definition of “employee,” applies, except as otherwise provided. (Amended by Stats. 2021, Ch. 124, Sec. 38. (AB 938) Effective January 1, 2022.)
  129. 17020.13.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    Section 7701(k) of the Internal Revenue Code applies here, unless another rule provides otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.13. Section 7701(k) of the Internal Revenue Code, relating to treatment of certain amounts paid to charity, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 6. Effective October 6, 1993.)
  130. 17020.15.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section makes Internal Revenue Code section 7701(n) apply, subject to any other provision, and changes the wording so “this part” is used instead of “this title.”

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.15. (a) Section 7701(n) of the Internal Revenue Code, relating to convention or association of churches, shall apply, except as otherwise provided. (b) The phrase “this part” shall be substituted for “this title” in Section 7701(n) of the Internal Revenue Code. (Added by Stats. 2010, Ch. 14, Sec. 3. (SB 401) Effective January 1, 2011.)
  131. 17020.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “transferred basis property” for this part by referring to the Internal Revenue Code definition, with one substitution.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.2. For purposes of this part, the term “transferred basis property” has the same meaning given that term by Section 7701(a)(43) of the Internal Revenue Code, except that reference to Subtitle A shall instead be a reference to this part. (Added by Stats. 1987, Ch. 1138, Sec. 6. Effective September 25, 1987. Applicable to taxable years beginning on or after January 1, 1987, by Sec. 189 of Ch. 1138.)
  132. 17020.3.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “exchanged basis property” for this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.3. For purposes of this part, the term “exchanged basis property” has the same meaning given that term by Section 7701(a)(44) of the Internal Revenue Code, except that reference to Subtitle A shall instead be a reference to this part. (Added by Stats. 1987, Ch. 1138, Sec. 7. Effective September 25, 1987. Applicable to taxable years beginning on or after January 1, 1987, by Sec. 189 of Ch. 1138.)
  133. 17020.4.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “nonrecognition transaction” for this part by tying it to the Internal Revenue Code, with one substitution.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.4. For purposes of this part, the term “nonrecognition transaction” has the same meaning given that term by Section 7701(a)(45) of the Internal Revenue Code, except that reference to Subtitle A shall instead be a reference to this part. (Added by Stats. 1987, Ch. 1138, Sec. 8. Effective September 25, 1987. Applicable to taxable years beginning on or after January 1, 1987, by Sec. 189 of Ch. 1138.)
  134. 17020.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    When figuring gain or loss on property for this part, use Section 7701(g) of the Internal Revenue Code for nonrecourse indebtedness, unless another provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.5. For purposes of this part, in determining the amount of gain or loss (or deemed gain or loss) with respect to any property, Section 7701(g) of the Internal Revenue Code, relating to nonrecourse indebtedness, applies, except as otherwise provided. (Amended by Stats. 2003, Ch. 185, Sec. 5. Effective January 1, 2004.)
  135. 17020.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    For this part, Internal Revenue Code sections 7702, 7702A, and 7702B apply, except where this section says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.6. For purposes of this part: (a) Section 7702 of the Internal Revenue Code, relating to life insurance contracts, shall apply, except as otherwise provided. (b) Section 7702A of the Internal Revenue Code, relating to modified endowment contract defined, shall apply, except as otherwise provided. (c) (1) Section 7702B of the Internal Revenue Code, relating to treatment of qualified long-term care insurance, shall apply, except as otherwise provided. (2) The amendments made by Section 844 of the Pension Protection Act of 2006 (Public Law 109-280) to Section 7702B of the Internal Revenue Code shall not apply. (Amended by Stats. 2010, Ch. 14, Sec. 2. (SB 401) Effective January 1, 2011.)
  136. 17020.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    Section 7701(a)(46) of the Internal Revenue Code applies here, unless another provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.7. Section 7701(a)(46) of the Internal Revenue Code, relating to determination of whether there is a collective bargaining agreement, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 2. Effective October 6, 1993.)
  137. 17020.8.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    Section 7701(e) of the Internal Revenue Code applies here, unless another provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.8. Section 7701(e) of the Internal Revenue Code, relating to treatment of certain contracts for providing services, etc., shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 3. Effective October 6, 1993.)
  138. 17020.9.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    For this part, “domestic building and loan association” means the same as that term means in Section 7701(a)(19) of the Internal Revenue Code.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17020.9. For purposes of this part, the term “domestic building and loan association” has the same meaning given that term by Section 7701(a)(19) of the Internal Revenue Code. (Added by Stats. 1987, Ch. 1138, Sec. 9. Effective September 25, 1987. Applicable to taxable years beginning on or after January 1, 1987, by Sec. 189 of Ch. 1138.)
  139. 17021.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    For this part, “spouse” must be read as “former spouse” when the spouses are divorced or their registered domestic partnership has been terminated, if that fits the meaning of the part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17021. As used in this part, if the spouses therein referred to are divorced or their registered domestic partnership has been terminated, wherever appropriate to the meaning of this part, the term “spouse” shall be read “former spouse.” (Amended by Stats. 2016, Ch. 50, Sec. 95. (SB 1005) Effective January 1, 2017.)
  140. 17021.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    Section 7703 of the Internal Revenue Code applies to marital-status determinations, except where otherwise provided.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17021.5. Section 7703 of the Internal Revenue Code, relating to determination of marital status, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 7. Effective October 6, 1993.)
  141. 17021.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section treats a taxpayer’s domestic partner as a spouse for certain income tax purposes, with exceptions where that treatment would create conflicting federal tax results.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17021.7. (a) (1) For purposes of this part, the domestic partner of the taxpayer shall be treated as the spouse of the taxpayer for purposes of applying only Sections 105(b), 106(a), 162(l), 162(n), and 213(a) of the Internal Revenue Code and for purposes of determining whether an individual is the taxpayer’s “dependent” or “member of their family” as these terms are used in those sections. (2) This subdivision shall apply to each taxable year beginning on or after January 1, 2002. (b) (1) Except as otherwise provided, the domestic partner or former domestic partner of a taxpayer shall be treated as the spouse or former spouse of that taxpayer for purposes of applying provisions of this part, Part 10.2 (commencing with Section 18401), Part 10.7 (commencing with Section 21001), and Part 11 (commencing with Section 23001), and for purposes of applying provisions of the Internal Revenue Code that are applicable for purposes of this part, Part 10.2, Part 10.7, or Part 11. (2) A domestic partner shall not be treated as the spouse of a taxpayer as required by paragraph (1) in the following circumstances: (A) Where the treatment would result in the classification of a business entity for purposes of this part, Part 10.2, or Part 11 that would be different than the classification of that business entity for federal income tax purposes. (B) Where the treatment required by paragraph (1) would result in disqualification for federal income tax purposes of a plan that otherwise qualifies under Section 401(a) of the Internal Revenue Code. (C) Where the treatment would result in a tax-favored account that would not be qualified as a tax-favored account for federal income tax purposes. For purposes of this subparagraph, “tax-favored account” means an individual account, plan, or arrangement that is exempt from income tax under Chapter 1 of the Internal Revenue Code, including an individual retirement account, as described in Section 408 of the Internal Revenue Code, an Archer MSA, as described in Section 220 of the Internal Revenue Code, a qualified tuition program, as described in Section 529 of the Internal Revenue Code, and a Coverdell education savings account, as described in Section 530 of the Internal Revenue Code. (3) The amendments made by the act adding this subdivision shall be operative for each taxable year beginning on or after January 1, 2007. (c) For purposes of this section, the term “domestic partner” means an individual partner in a domestic partner relationship within the meaning of Section 297 of the Family Code. (Amended by Stats. 2007, Ch. 426, Sec. 1. Effective October 10, 2007. Applicable to taxable years beginning on or after January 1, 2007, pursuant to paragraph (3) of new subdivision (b).)
  142. 17022.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “military or naval forces of the United States” and “armed forces of the United States” to include certain regular and reserve uniformed services components and the Coast Guard.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17022. The term “military or naval forces of the United States” and the term “armed forces of the United States” each includes all regular and reserve components of the uniformed services which are subject to the jurisdicition of the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, or the Secretary of the Air Force, and each term also includes the Coast Guard. The members of such forces include commissioned officers and personnel below the grade of commissioned officers in such forces. (Added by Stats. 1955, Ch. 939.)
  143. 17023.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “counsel for the Franchise Tax Board” and “Franchise Tax Counsel” as attorneys appointed or employed by the Franchise Tax Board who act with the Attorney General’s approval and supervision.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17023. The term “counsel for the Franchise Tax Board,” and “Franchise Tax Counsel” as used in this part, means attorney or attorneys appointed or employed by the Franchise Tax Board and acting subject to the approval and under the supervision of the Attorney General. (Added by Stats. 1955, Ch. 939.)
  144. 17024.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines “Personal Income Tax Law of 1954.”

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17024. The term “Personal Income Tax Law of 1954,” means Part 10 of Division 2 of the Revenue and Taxation Code as enacted by the Statutes 1943, Chapter 659, and as subsequently amended, including all amendments enacted prior to January 1, 1955. (Added by Stats. 1955, Ch. 939.)
  145. 17024.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section defines how specified federal tax rules apply for this part and sets special rules for taxpayer elections, filings, and certain Internal Revenue Code references.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17024.5. (a) (1) Unless otherwise specifically provided, the terms “Internal Revenue Code,” “Internal Revenue Code of 1954,” or “Internal Revenue Code of 1986,” for purposes of this part, mean Title 26 of the United States Code, including all amendments thereto as enacted on the specified date for the applicable taxable year as follows: Taxable Year Specified Date of Internal Revenue Code Sections (A) For taxable years beginning on or after January 1, 1983, and on or before December 31, 1983 ........................ January 15, 1983 (B) For taxable years beginning on or after January 1, 1984, and on or before December 31, 1984 ........................ January 1, 1984 (C) For taxable years beginning on or after January 1, 1985, and on or before December 31, 1985 ........................ January 1, 1985 (D) For taxable years beginning on or after January 1, 1986, and on or before December 31, 1986 ........................ January 1, 1986 (E) For taxable years beginning on or after January 1, 1987, and on or before December 31, 1988 ........................ January 1, 1987 (F) For taxable years beginning on or after January 1, 1989, and on or before December 31, 1989 ........................ January 1, 1989 (G) For taxable years beginning on or after January 1, 1990, and on or before December 31, 1990 ........................ January 1, 1990 (H) For taxable years beginning on or after January 1, 1991, and on or before December 31, 1991 ........................ January 1, 1991 (I) For taxable years beginning on or after January 1, 1992, and on or before December 31, 1992 ........................ January 1, 1992 (J) For taxable years beginning on or after January 1, 1993, and on or before December 31, 1996 ........................ January 1, 1993 (K) For taxable years beginning on or after January 1, 1997, and on or before December 31, 1997 ........................ January 1, 1997 (L) For taxable years beginning on or after January 1, 1998, and on or before December 31, 2001 ........................ January 1, 1998 (M) For taxable years beginning on or after January 1, 2002, and on or before December 31, 2004 ........................ January 1, 2001 (N) For taxable years beginning on or after January 1, 2005, and on or before December 31, 2009 ........................ January 1, 2005 (O) For taxable years beginning on or after January 1, 2010, and on or before December 31, 2014 ........................ January 1, 2009 (P) For taxable years beginning on or after January 1, 2015, and on or before December 31, 2024 ........................ January 1, 2015 (Q) For taxable years beginning on or after January 1, 2025 ........................ January 1, 2025 (2) (A) Unless otherwise specifically provided, for federal laws enacted on or after January 1, 1987, and on or before the specified date for the taxable year, uncodified provisions that relate to provisions of the Internal Revenue Code that are incorporated for purposes of this part shall be applicable to the same taxable years as the incorporated provisions. (B) In the case where Section 901 of the Economic Growth and Tax Relief Act of 2001 (Public Law 107-16) applies to any provision of the Internal Revenue Code that is incorporated for purposes of this part, Section 901 of the Economic Growth and Tax Relief Act of 2001 shall apply for purposes of this part in the same manner and to the same taxable years as it applies for federal income tax purposes. (3) Subtitle G (Tax Technical Corrections) and Part I of Subtitle H (Repeal of Expired or Obsolete Provisions) of the Revenue Reconciliation Act of 1990 (Public Law 101-508) modified numerous provisions of the Internal Revenue Code and provisions of prior federal acts, some of which are incorporated by reference into this part. Unless otherwise provided, the provisions described in the preceding sentence, to the extent that they modify provisions that are incorporated into this part, are declaratory of existing law and shall be applied in the same manner and for the same periods as specified in the Revenue Reconciliation Act of 1990. (b) Unless otherwise specifically provided, when applying any provision of the Internal Revenue Code for purposes of this part, a reference to any of the following is not applicable for purposes of this part: (1) Except as provided in Chapter 4.5 (commencing with Section 23800) of Part 11 of Division 2, an electing small business corporation, as defined in Section 1361(b) of the Internal Revenue Code. (2) Domestic international sales corporations (DISC), as defined in Section 992(a) of the Internal Revenue Code. (3) A personal holding company, as defined in Section 542 of the Internal Revenue Code. (4) A foreign personal holding company, as defined in Section 552 of the Internal Revenue Code. (5) A foreign investment company, as defined in Section 1246(b) of the Internal Revenue Code. (6) A foreign trust, as defined in Section 679 of the Internal Revenue Code. (7) Foreign income taxes and foreign income tax credits. (8) Section 911 of the Internal Revenue Code, relating to citizens or residents of the United States living abroad. (9) A foreign corporation, except that Section 367 of the Internal Revenue Code shall be applicable. (10) Federal tax credits and carryovers of federal tax credits. (11) Nonresident aliens. (12) Deduction for personal exemptions, as provided in Section 151 of the Internal Revenue Code. (13) The tax on generation-skipping transfers imposed by Section 2601 of the Internal Revenue Code. (14) The tax, relating to estates, imposed by Section 2001 or 2101 of the Internal Revenue Code. (c) (1) The provisions contained in Sections 41 to 44, inclusive, and Section 172 of the Tax Reform Act of 1984 (Public Law 98-369), relating to treatment of debt instruments, is not applicable for taxable years beginning before January 1, 1987. (2) The provisions contained in Public Law 99-121, relating to the treatment of debt instruments, is not applicable for taxable years beginning before January 1, 1987. (3) For each taxable year beginning on or after January 1, 1987, the provisions referred to by paragraphs (1) and (2) shall be applicable for purposes of this part in the same manner and with respect to the same obligations as the federal provisions, except as otherwise provided in this part. (d) When applying the Internal Revenue Code for purposes of this part, regulations promulgated in final form or issued as temporary regulations by “the secretary” shall be applicable as regulations under this part to the extent that they do not conflict with this part or with regulations issued by the Franchise Tax Board. (e) Whenever this part allows a taxpayer to make an election, the following rules shall apply: (1) A proper election filed with the Internal Revenue Service in accordance with the Internal Revenue Code or regulations issued by “the secretary” shall be deemed to be a proper election for purposes of this part, unless otherwise provided in this part or in regulations issued by the Franchise Tax Board. (2) A copy of that election shall be furnished to the Franchise Tax Board upon request. (3) (A) Except as provided in subparagraph (B), in order to obtain treatment other than that elected for federal purposes, a separate election shall be filed at the time and in the manner required by the Franchise Tax Board. (B) (i) If a taxpayer makes a proper election for federal income tax purposes prior to the time that taxpayer becomes subject to the tax imposed under this part or Part 11 (commencing with Section 23001), that taxpayer is deemed to have made the same election for purposes of the tax imposed by this part, Part 10.2 (commencing with Section 18401), and Part 11 (commencing with Section 23001), as applicable, and that taxpayer may not make a separate election for California tax purposes unless that separate election is expressly authorized by this part, Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001), or by regulations issued by the Franchise Tax Board. (ii) If a taxpayer has not made a proper election for federal income tax purposes prior to the time that taxpayer becomes subject to tax under this part or Part 11 (commencing with Section 23001), that taxpayer may not make a separate California election for purposes of this part, Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001), unless that separate election is expressly authorized by this part, Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001), or by regulations issued by the Franchise Tax Board. (iii) This subparagraph applies only to the extent that the provisions of the Internal Revenue Code or the regulation issued by “the secretary” authorizing an election for federal income tax purposes apply for purposes of this part, Part 10.2 (commencing with Section 18401) or Part 11 (commencing with Section 23001). (f) Whenever this part allows or requires a taxpayer to file an application or seek consent, the rules set forth in subdivision (e) shall be applicable with respect to that application or consent. (g) When applying the Internal Revenue Code for purposes of determining the statute of limitations under this part, any reference to a period of three years shall be modified to read four years for purposes of this part. (h) When applying, for purposes of this part, any section of the Internal Revenue Code or any applicable regulation thereunder, all of the following shall apply: (1) References to “adjusted gross income” shall mean the amount computed in accordance with Section 17072, except as provided in paragraph (2). (2) (A) Except as provided in subparagraph (B), references to “adjusted gross income” for purposes of computing limitations based upon adjusted gross income, shall mean the amount required to be shown as adjusted gross income on the federal tax return for the same taxable year. (B) In the case of registered domestic partners and former registered domestic partners, adjusted gross income, for the purposes of computing limitations based upon adjusted gross income, shall mean the adjusted gross income on a federal tax return computed as if the registered domestic partner or former registered domestic partner was treated as a spouse or former spouse, respectively, for federal income tax purposes, and used the same filing status that was used on the state tax return for the same taxable year. (3) Any reference to “subtitle” or “chapter” shall mean this part. (4) The provisions of Section 7806 of the Internal Revenue Code, relating to construction of title, shall apply. (5) Any provision of the Internal Revenue Code that becomes operative on or after the specified date for that taxable year shall become operative on the same date for purposes of this part. (6) Any provision of the Internal Revenue Code that becomes inoperative on or after the specified date for that taxable year shall become inoperative on the same date for purposes of this part. (7) Due account shall be made for differences in federal and state terminology, effective dates, substitution of “Franchise Tax Board” for “secretary” when appropriate, and other obvious differences. (8) Except as otherwise provided, any reference to Section 501 of the Internal Revenue Code shall be interpreted to also refer to Section 23701. (i) Any reference to a specific provision of the Internal Revenue Code shall include modifications of that provision, if any, in this part. (Amended by Stats. 2025, Ch. 231, Sec. 1. (SB 711) Effective October 1, 2025. Applicable to taxable years beginning on or after January 1, 2015, as provided in Sec. 41 of Stats. 2015, Ch. 359.)
  146. 17026.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This part applies to the taxable income of taxpayers received or accrued on or after January 1, 1935.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17026. This part applies to the taxable income of taxpayers received or accrued on or after January 1, 1935. (Amended by Stats. 2019, Ch. 497, Sec. 258. (AB 991) Effective January 1, 2020.)
  147. 17028.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section says provisions that are substantially the same as existing laws on the same subject are treated as restatements and continuations, not new laws.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17028. The provisions of this code insofar as they are substantially the same as existing statutory provisions relating to the same subject matter shall be construed as restatements and continuations thereof, and not as new enactments. (Added by Stats. 1955, Ch. 939.)
  148. 17029.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    Repealing a Personal Income Tax Law provision does not undo prior acts, rights, suits, or proceedings, and existing rights and liabilities continue to be enforceable.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17029. The repeal of any provision of the Personal Income Tax Law shall not affect any act done or any right accruing or accrued, or any suit or proceeding had or commenced in any civil cause, before such repeal; but all rights and liabilities under such law shall continue, and may be enforced in the same manner, as if such repeal had not been made. (Amended by Stats. 1991, Ch. 117, Sec. 9. Effective July 16, 1991.)
  149. 17029.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section preserves certain taxpayer carryovers and uses pre-1987 or post-1987 law rules for basis and basis adjustments depending on when the asset was acquired or the taxable year begins.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17029.5. (a) The enactment of the act adding this section to the code shall not deprive any taxpayer of any carryover of a credit, excess contribution, or loss to which that taxpayer was entitled under this part, including all amendments enacted prior to January 1, 1987. (b) The carryover of the credit, excess contribution, or loss shall be allowed to be carried forward under the act adding this section to the code for the same period of time as the taxpayer would have been entitled to carry that item forward under prior law. (c) For purposes of applying the provisions of the act adding this section to the code, the basis or recomputed basis of any asset acquired prior to January 1, 1987, shall be determined under the law at the time the asset was acquired and any adjustments to basis shall be computed as follows: (1) Any adjustments to basis for taxable years beginning prior to January 1, 1987, shall be computed under applicable provisions of this part, including all amendments enacted prior to January 1, 1987; and (2) Any adjustments to basis for taxable years beginning on or after January 1, 1987, shall be computed under the applicable provisions of the act adding this section to the code. (Added by Stats. 1987, Ch. 1138, Sec. 14. Effective September 25, 1987. Applicable to taxable years beginning on or after January 1, 1987, by Sec. 189 of Ch. 1138.)
  150. 17030.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    When applying the Personal Income Tax Law to a period, a reference to a provision that is not applicable for that period is treated as a reference to the matching provision in the other law that is applicable.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17030. For the purpose of applying the Personal Income Tax Law of 1954 or the Personal Income Tax Law as herein enacted to any period, any reference in either such law to another provision of the Personal Income Tax Law of 1954 or the Personal Income Tax Law as herein enacted which is not then applicable to such period shall be deemed a reference to the corresponding provision of the other law which is then applicable to such period. (Added by Stats. 1955, Ch. 939.)
  151. 17031.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    If a Part 10 provision refers to applying the law to a prior period, it is to be read as referring to the corresponding Part 10 provision or other personal income tax laws that applied to that prior period, when appropriate and consistent with the provision’s purpose.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17031. Any provision of this part which refers to the application of any portion of this part to a prior period (or which depends upon the application to a prior period of any portion of this part) shall, when appropriate and consistent with the purpose of such provision, be deemed to refer to (or depend upon the application of) the corresponding provision of Part 10 of Division 2 of the Revenue and Taxation Code or of such other Personal Income Tax Laws as were applicable to the prior period. (Added by Stats. 1955, Ch. 939.)
  152. 17032.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    Headings in this part do not control the meaning or scope of the law.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17032. Division, part, chapter, article, section and subsection headings contained herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning, or intent of the provisions of this part. (Added by Stats. 1955, Ch. 939.)
  153. 17033.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    If part of this section is found unconstitutional, the rest still applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17033. If any chapter, article, section, subsection, clause, sentence or phrase of this part which is reasonably separable from the remaining portions of this part, or the application thereof to any person, taxpayer or circumstance, is for any reason determined unconstitutional, such determination shall not affect the remainder of this part, nor, will the application of any such provision to other persons, taxpayers or circumstances, be affected thereby. (Added by Stats. 1955, Ch. 939.)
  154. 17034.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    Acts affecting taxes, penalties, or tax credits apply to taxable years starting on or after January 1 of the year the act takes effect, unless the act says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17034. Unless otherwise specifically provided therein, the provisions of any act: (a) That affect the imposition or computation of taxes, additions to tax, penalties, or the allowance of credits against the tax, shall be applied to taxable years beginning on or after January 1 of the year in which the act takes effect. (b) That otherwise affect the provisions of this part shall be applied on and after the date the act takes effect. (Amended (as amended by Stats. 1993, Ch. 31) by Stats. 1993, Ch. 877, Sec. 7.1. Effective October 6, 1993. Operative January 1, 1994, by Sec. 102 of Ch. 877.)
  155. 17035.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    ‘Withholding agent’ means a person who is required to deduct and withhold tax under Section 18662.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17035. The term “withholding agent” means any person required to deduct and withhold any tax under Section 18662. (Amended by Stats. 1993, Ch. 31, Sec. 2. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  156. 17036.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section allows notice to be given by first class mail with postage prepaid, unless this part says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17036. Unless expressly otherwise provided in this part, any notice may be given by first class mail postage prepaid. (Added by Stats. 1972, Ch. 1237.)
  157. 17037.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

    Verify source ↗

    This section lists other code provisions and statutes that are related to personal income tax.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17037. Provisions in other codes or general law statutes which are related to this part include all of the following: (a) Chapter 20.6 (commencing with Section 9891) of Division 3 of the Business and Professions Code, relating to tax preparers. (b) Part 10.2 (commencing with Section 18401), relating to the administration of franchise and income tax laws. (c) Part 10.5 (commencing with Section 20501), relating to the Property Tax Assistance and Postponement Law. (d) Part 10.7 (commencing with Section 21001), relating to the Taxpayers’ Bill of Rights. (e) Part 11 (commencing with Section 23001), relating to the Corporation Tax Law. (f) Sections 15700 to 15702.1, inclusive, of the Government Code, relating to the Franchise Tax Board. (g) Article 8 (commencing with Section 7464.5) of Chapter 10.5 of Division 3 of the Business and Professions Code. (Amended November 3, 2020, by initiative Proposition 22, Sec. 2. Effective December 16, 2020.)
  158. 17038.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines what “California Consumer Price Index” means for different taxable years.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17038. (a) For purposes of this part, unless expressly otherwise provided, for taxable years beginning before January 1, 1984, references to the California Consumer Price Index shall mean the California Consumer Price Index for All Urban Consumers (old series). (b) For taxable years beginning on or after January 1, 1984, references to the California Consumer Price Index shall mean the California Consumer Price Index for All Urban Consumers as modified for rental equivalence homeownership (new series). (Amended by Stats. 1983, Ch. 323, Sec. 82.5. Effective July 1, 1983.)
  159. 17039.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines “net tax” for credit calculations and sets the order in which credits are applied, including limits for the tentative minimum tax and special rules for partnerships, spouses, pass-through entities, and disregarded entities.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17039. (a) Notwithstanding any provision in this part to the contrary, for the purposes of computing tax credits, the term “net tax” means the tax imposed under either Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to lump-sum distributions) less the credits allowed by Section 17054 (relating to personal exemption credits) and any amount imposed under paragraph (1) of subdivision (d) and paragraph (1) of subdivision (e) of Section 17560. Notwithstanding the preceding sentence, the “net tax” shall not be less than the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions), if any. Credits shall be allowed against “net tax” in the following order: (1) Credits that do not contain carryover or refundable provisions, except those described in paragraphs (4) and (5). (2) Credits that contain carryover provisions but do not contain refundable provisions, except for those that are allowed to reduce “net tax” below the tentative minimum tax, as defined by Section 17062. (3) Credits that contain both carryover and refundable provisions, except the credit described in paragraph (9). (4) The minimum tax credit allowed by Section 17063 (relating to the alternative minimum tax). (5) (A) For taxable years beginning on or after January 1, 2002, and before January 1, 2022, credits that are allowed to reduce “net tax” below the tentative minimum tax, as defined by Section 17062. (B) For taxable years beginning on or after January 1, 2022, credits that are allowed to reduce “net tax” below the tentative minimum tax, as defined by Section 17062, except the credit described in paragraph (7) and the credit described in paragraph (9). (6) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001). (7) For taxable years beginning on or after January 1, 2022, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act). (8) For taxable years beginning on or after January 1, 2026, the credit allowed by Section 17052.11 (relating to the elective tax under the Small Business Relief Act). (9) Credits that contain refundable provisions but do not contain carryover provisions. (10) For taxable years beginning on or after January 1, 2025, the credit allowed by Section 17053.98.1. (11) For taxable years beginning on or after January 1, 2027, the credit allowed by Section 17039.5. (12) The credits provided by Sections 17061 (relating to refunds pursuant to the Unemployment Insurance Code) and 19002 (relating to tax withholding). (b) The order within each paragraph of subdivision (a) shall be determined by the Franchise Tax Board. (c) (1) Notwithstanding any other provision of this part, no tax credit shall reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits: (A) The credit allowed by former Section 17052.2 (relating to teacher retention tax credit, repealed on August 24, 2007). (B) The credit allowed by former Section 17052.4 (relating to solar energy, repealed on December 1, 1989). (C) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on January 1, 1987). (D) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on December 1, 1994). (E) The credit allowed by Section 17052.12 (relating to research expenses). (F) The credit allowed by former Section 17052.13 (relating to sales and use tax credit, repealed on January 1, 1997). (G) The credit allowed by former Section 17052.15 (relating to Los Angeles Revitalization Zone sales tax credit, repealed on December 1, 1998). (H) The credit allowed by Section 17052.25 (relating to the adoption costs credit). (I) The credit allowed by Section 17053.5 (relating to the renter’s credit). (J) The credit allowed by former Section 17053.8 (relating to enterprise zone hiring credit, repealed on October 3, 1997). (K) The credit allowed by former Section 17053.10 (relating to Los Angeles Revitalization Zone hiring credit, repealed on December 1, 1998). (L) The credit allowed by former Section 17053.11 (relating to program area hiring credit, repealed on January 1, 1997). (M) For each taxable year beginning on or after January 1, 1994, the credit allowed by former Section 17053.17 (relating to Los Angeles Revitalization Zone hiring credit, repealed on December 1, 1998). (N) The credit allowed by former Section 17053.33 (relating to targeted tax area sales or use tax credit, repealed on December 1, 2015). (O) The credit allowed by former Section 17053.34 (relating to targeted tax area hiring credit, repealed on December 1, 2019). (P) The credit allowed by former Section 17053.49 (relating to qualified property, repealed on January 1, 2004). (Q) The credit allowed by former Section 17053.70 (relating to enterprise zone sales or use tax credit, repealed on December 1, 2015). (R) The credit allowed by former Section 17053.74 (relating to enterprise zone hiring credit, repealed on December 1, 2019). (S) The credit allowed by Section 17054 (relating to credits for personal exemption). (T) The credit allowed by Section 17054.5 (relating to the credits for a qualified joint custody head of household and a qualified taxpayer with a dependent parent). (U) The credit allowed by Section 17054.7 (relating to the credit for a senior head of household). (V) The credit allowed by former Section 17057 (relating to clinical testing expenses, repealed on December 1, 1993). (W) The credit allowed by Section 17058 (relating to low-income housing). (X) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 17059.2 (relating to GO-Biz California Competes Credit). (Y) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code). (Z) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001). (AA) The credit allowed by Section 19002 (relating to tax withholding). (AB) For taxable years beginning on or after January 1, 2014, the credit allowed by former Section 17053.86 (relating to the College Access Tax Credit Fund, repealed on December 1, 2017). (AC) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 17053.87 (relating to the College Access Tax Credit Fund). (AD) For taxable years beginning on or after January 1, 2021, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act). (AE) For taxable years beginning on or after January 1, 2020, the credit allowed by Section 17053.98 (relating to the California Motion Picture and Television Production Credit). (AF) For taxable years beginning on or after January 1, 2025, the credit allowed by Section 17053.98.1 (relating to the California Motion Picture and Television Production Credit). (AG) For taxable years beginning on or after January 1, 2027, the credit allowed by Section 17039.5. (AH) For taxable years beginning on or after January 1, 2026, the credit allowed by Section 17052.11 (relating to the elective tax under the Small Business Relief Act). (AI) For taxable years beginning on or after January 1, 2026, and before January 1, 2036, the credit allowed by Section 17053.40 (relating to eligible transmission projects). (2) Any credit that is partially or totally denied under paragraph (1) shall be allowed to be carried over and applied to the net tax in succeeding taxable years, if the provisions relating to that credit include a provision to allow a carryover when that credit exceeds the net tax. (d) Unless otherwise provided, any remaining carryover of a credit allowed by a section that has been repealed or made inoperative shall continue to be allowed to be carried over under the provisions of that section as it read immediately before being repealed or becoming inoperative. (e) (1) Unless otherwise provided, if two or more taxpayers (other than spouses) share in costs that would be eligible for a tax credit allowed under this part, each taxpayer shall be eligible to receive the tax credit in proportion to the taxpayer’s respective share of the costs paid or incurred. (2) In the case of a partnership, the credit shall be allocated among the partners pursuant to a written partnership agreement in accordance with Section 704 of the Internal Revenue Code, relating to partner’s distributive share. (3) In the case of spouses who file separate returns, the credit may be taken by either or equally divided between them. (f) Unless otherwise provided, in the case of a partnership, any credit allowed by this part shall be computed at the partnership level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit shall be applied to the partnership and to each partner. (g) (1) With respect to any taxpayer that directly or indirectly owns an interest in a business entity that is disregarded for tax purposes pursuant to Section 23038 and any regulations thereunder, the amount of any credit or credit carryforward allowable for any taxable year attributable to the disregarded business entity shall be limited in accordance with paragraphs (2) and (3). (2) The amount of any credit otherwise allowed under this part, including any credit carryover from prior years, that may be applied to reduce the taxpayer’s “net tax,” as defined in subdivision (a), for the taxable year shall be limited to an amount equal to the excess of the taxpayer’s regular tax (as defined in Section 17062), determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayer’s regular tax (as defined in Section 17062), determined by excluding the income attributable to that disregarded business entity. A credit shall not be allowed if the taxpayer’s regular tax (as defined in Section 17062), determined by including the income attributable to the disregarded business entity, is less than the taxpayer’s regular tax (as defined in Section 17062), determined by excluding the income attributable to the disregarded business entity. (3) If the amount of a credit allowed pursuant to the section establishing the credit exceeds the amount allowable under this subdivision in any taxable year, the excess amount may be carried over to subsequent taxable years pursuant to subdivisions (c) and (d). (h) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayer’s first taxable year beginning on or after the date the credit is no longer operative may be claimed by the taxpayer in that taxable year, notwithstanding the repeal of the statute authorizing the credit before the close of that taxable year. (2) For purposes of this subdivision, “eligible pass-thru entity” means any partnership or “S” corporation that files its return on a fiscal year basis pursuant to Section 18566, and that is entitled to a credit pursuant to this part for the taxable year that begins during the last year the credit is operative. (3) This subdivision applies to credits that become inoperative on or after January 1, 2002. (i) The amendments made to this section by Chapter 3 of the Statutes of 2022 shall apply as follows: (1) The amendments to subdivisions (a), (e), and (h) shall be operative for taxable years beginning on or after January 1, 2022. (2) The amendments to subdivision (c) shall be operative for taxable years beginning on or after January 1, 2021. (j) The amendments made to this section by Chapter 56 of the Statutes of 2023 shall apply as follows: (1) The amendments to paragraphs (3), (5), and (9) of subdivision (a) shall be operative for taxable years beginning on or after January 1, 2025. (2) The amendments to subparagraph (AE) of paragraph (1) of subdivision (c) shall be operative for taxable years beginning on or after January 1, 2020. (3) The amendments to subparagraph (AF) of paragraph (1) of subdivision (c) shall be operative for taxable years beginning on or after January 1, 2025. (Amended by Stats. 2025, Ch. 119, Sec. 63. (SB 254) Effective September 19, 2025.)
  160. 17039.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    A specified credit may reduce certain taxes below the tentative minimum tax, but only after another credit is allowed first.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17039.1. Notwithstanding Section 17039 or any other provision in this part to the contrary, the credit allowed by Section 17053.30 (relating to natural heritage) may reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, but only after allowance of the credit allowed by Section 17063. (Added by Stats. 2000, Ch. 113, Sec. 2. Effective July 10, 2000.)
  161. 17039.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section limits how much business credits can reduce a taxpayer’s net tax during specified taxable years, and it does not apply if the taxpayer’s net business income is under $500,000.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17039.2. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for each taxable year beginning on or after January 1, 2008, and before January 1, 2010, the total of all business credits otherwise allowable under any credit under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the “net tax” (as defined in Section 17039) below the applicable amount. (b) For purposes of this section, “business credit” means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits: (1) The credit allowed by Section 17052.6 (relating to credit for household and dependent care). (2) The credit allowed by Section 17052.25 (relating to credit for adoption costs). (3) The credit allowed by Section 17053.5 (relating to renter’s tax credit). (4) The credit allowed by Section 17053.80 (relating to full time employment hiring credit). (5) The credit allowed by Section 17054 (relating to credit for personal exemption). (6) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent). (7) The credit allowed by Section 17054.7 (relating to credit for senior head of household). (8) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code). (c) For purposes of this section, the “applicable amount” shall be equal to 50 percent of the “net tax” (as defined in Section 17039) before application of any credits. (d) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part. (e) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit (or any portion thereof) was not allowed. (f) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401) the credits listed in subdivision (b) shall be required to be applied before any business credits, as limited by subdivision (a), are applied. (g) The provisions of this section shall not apply to a taxpayer with net business income of less than five hundred thousand dollars ($500,000) for the taxable year. For purposes of this subdivision, business income means: (1) Income from a trade or business, whether conducted by the taxpayer or by a pasthrough entity owned directly or indirectly by the taxpayer. For purposes of this paragraph, the term “passthrough entity” means a partnership or an “S” corporation. (2) Income from rental activity. (3) Income attributable to a farming business. (Amended by Stats. 2009, 3rd Ex. Sess., Ch. 17, Sec. 2. Effective February 20, 2009.)
  162. 17039.3.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section limits how much business credits can reduce tax for certain taxpayers, with a $5 million cap for specified taxable years.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the “net tax,” as defined in Section 17039, by more than five million dollars ($5,000,000). (b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of “tax,” as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000). (c) For purposes of this section, “business credit” means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits: (1) The credit allowed by Section 17052 (relating to credit for earned income). (2) The credit allowed by Section 17052.1 (relating to credit for young child). (3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care). (4) The credit allowed by Section 17052.25 (relating to credit for adoption costs). (5) The credit allowed by Section 17053.5 (relating to renter’s tax credit). (6) The credit allowed by Section 17054 (relating to credit for personal exemption). (7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent). (8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household). (9) The credit allowed by Section 17058 (relating to credit for low-income housing). (10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code). (d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b). (e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part. (f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed. (g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied. (h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (i) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022. (Amended by Stats. 2022, Ch. 3, Sec. 7. (SB 113) Effective February 9, 2022.)
  163. 17039.4.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    This section limits how much business credits can reduce tax for certain taxpayers.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17039.4. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2024, and before January 1, 2030, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the “net tax,” as defined in Section 17039, by more than five million dollars ($5,000,000). (b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2024, and before January 1, 2030, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of “tax,” as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000). (c) For purposes of this section, “business credit” means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits: (1) The credit allowed by Section 17052 (relating to credit for earned income). (2) The credit allowed by Section 17052.1 (relating to credit for young child). (3) The credit allowed by Section 17052.2 (relating to credit for foster youth). (4) The credit allowed by Section 17052.6 (relating to credit for household and dependent care). (5) The credit allowed by Section 17052.10 or 17052.11 (relating to the elective tax under the Small Business Relief Act). (6) The credit allowed by Section 17052.25 (relating to credit for adoption costs). (7) The credit allowed by Section 17053.5 (relating to renter’s tax credit). (8) The credit allowed by Section 17054 (relating to credit for personal exemption). (9) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent). (10) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household). (11) The credit allowed by Section 17058 (relating to credit for low-income housing). (12) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code). (d) Any annual refundable credit amount included in an election pursuant to Section 17039.5 is not included in the limitation set forth in subdivision (a) or (b). (e) Notwithstanding the operative date in subdivision (a), for taxable years beginning on or after January 1, 2027, if an election is made pursuant to subdivision (k) of Section 17053.98.1, both the credit allowed against the “net tax” under clause (i) of subparagraph (A) of paragraph (3) of subdivision (k) of Section 17053.98.1 and the annual refundable amount calculated under subdivision (k) of Section 17053.98.1 shall not be included in the limitation set forth in subdivisions (a) and (b). (f) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, or 23698.1 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b). (g) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part. (h) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed. (i) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied. (j) For taxpayers that make the election under subdivision (k) of Section 17053.98.1, any amount of refundable credits pursuant to that subdivision over the five-million-dollar ($5,000,000) limitation under this section shall be allowed in the first taxable year beginning on or after January 1, 2027. (k) If a taxpayer makes the election under both Section 17039.5 and subdivision (k) of Section 17053.98.1 with respect to the credit amount under Section 17053.98.1, the total amount of credit allowed pursuant to both elections shall not exceed the credit amount allowed under subdivision (a) of Section 17053.98.1. (l) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (m) The amendments made to this section by Section 6 of Chapter 17 of the Statutes of 2025 shall be operative for taxable years beginning on or after January 1, 2026. (n) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2027. (Amended by Stats. 2026, Ch. 23, Sec. 22. (SB 122) Effective June 29, 2026. Operative as prescribed by its own provisions.)
  164. 17039.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    A taxpayer may elect a refundable credit for taxable years starting in 2024 through 2029, but the election must be made on a timely original return and cannot be assigned to another taxpayer.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17039.5. (a) (1) For taxable years beginning on or after January 1, 2024, and before January 1, 2030, a taxpayer may make an election to receive an annual refundable credit amount of qualified credits for each taxable year to be allowed pursuant to paragraph (2). (2) In each taxable year of the refundable period, the annual refundable credit amount shall be allowed as a credit against the “net tax” computed under this part for the taxable year, and the excess, if any, shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account to the taxpayer. (b) For purposes of this section, the following definitions shall apply: (1) “Annual refundable credit amount” means 20 percent of the credit amount for the taxable year. (2) (A) “Credit amount” means the amount of the qualified credits that would have otherwise been available to reduce net tax in the taxable year of the election but for the limitation under Section 17039.4. (B) In the case of a pass-thru entity, the “credit amount” refers to the pro rata share or distributive share of the credit passed through to the partner or shareholder of the qualified taxpayer. For purposes of this subparagraph, the term “pass-thru entity” means any partnership, “S” corporation, or limited liability company treated as a partnership. (C) In the case of an assigned credit, the “credit amount” refers to the credit amount that was assigned to the taxpayer. (D) In the case of taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, the “credit amount” refers to the credit amount of all members of the combined report. (3) “Qualified credits” means the credits subject to the limitation under Section 17039.4. (4) “Refundable period” means the first five consecutive taxable years beginning the third taxable year after the taxable year that the taxpayer makes an election under this section. (c) No portion of the annual refundable credit amount can be assigned to another taxpayer. (d) The following shall apply for purposes of the election pursuant to this section: (1) The taxpayer may make an election for each taxable year beginning on or after January 1, 2024, and before January 1, 2030. (2) Each election shall be irrevocable and shall be made on an original, timely filed return required under Part 10.2 (commencing with Section 18401) for the taxable year that the election is made in the form and manner as prescribed by the Franchise Tax Board. (e) (1) Any adjustment of an annual refundable credit amount shall be treated as a mathematical error appearing on the return. This includes, but is not limited to, all of the following: (A) A valid election as required under this section was not made. (B) The Franchise Tax Board determines that credit amount overstatements in any taxable year resulted in an overstatement in any carryover amount or an overstatement of any refundable credit amount. (C) The Franchise Tax Board determines that the credit amount was overstated as a result of any subsequent adjustment in the amount of net tax, including, but not limited to, an audit adjustment or claim for refund. (2) Any amount of tax due resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. (f) (1) The Franchise Tax Board may prescribe regulations necessary or appropriate to carry out the purposes of this section. (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (g) This section shall remain in effect only until December 1, 2037, and as of that date is repealed. (Amended by Stats. 2026, Ch. 23, Sec. 23. (SB 122) Effective June 29, 2026. Repealed as of December 1, 2037, by its own provisions.)
  165. 17039.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. )

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    Certain taxpayers may not use business credits to reduce tax below the section’s limit.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 1. General Provisions and Definitions [17001 - 17039.6] ( Chapter 1 repealed and added by Stats. 1955, Ch. 939. ) ## 17039.6. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2030, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the “net tax,” as defined in Section 17039, by more than 70 percent or five million dollars ($5,000,000), whichever is greater. (b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2030, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of “tax,” as defined in Section 23036, of all members of the combined report by more than 70 percent or five million dollars ($5,000,000), whichever is greater. (c) For purposes of this section, “business credit” means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits: (1) The credit allowed by Section 17052 (relating to credit for earned income). (2) The credit allowed by Section 17052.1 (relating to credit for young child). (3) The credit allowed by Section 17052.2 (relating to credit for foster youth). (4) The credit allowed by Section 17052.6 (relating to credit for household and dependent care). (5) The credit allowed by Section 17052.10 or 17052.11 (relating to the elective tax under the Small Business Relief Act). (6) The credit allowed by Section 17052.25 (relating to credit for adoption costs). (7) The credit allowed by Section 17053.5 (relating to renter’s tax credit). (8) The credit allowed by Section 17054 (relating to credit for personal exemption). (9) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent). (10) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household). (11) The credit allowed by Section 17058 (relating to credit for low-income housing). (12) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code). (d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, or 23698.1 against qualified sales and use tax, as defined in Section 6902.5, are not included in the limitation set forth in subdivision (a) or (b). (e) Any annual refundable credit amount included in an election pursuant to Section 17039.5 is not included in the limitation set forth in subdivision (a) or (b). (f) If an election is made pursuant to subdivision (k) of Section 17053.98.1, both the credit allowed against the “net tax” under clause (i) of subparagraph (A) of paragraph (3) of subdivision (k) of Section 17053.98.1 and the annual refundable amount calculated under subdivision (k) of Section 17053.98.1 shall not be included in the limitation set forth in subdivisions (a) and (b) of this section. (g) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part. (h) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied. (i) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (Added by Stats. 2026, Ch. 23, Sec. 24. (SB 122) Effective June 29, 2026.)
  166. 17041.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section imposes California personal income tax on residents, nonresidents, part-year residents, and certain estates and trusts, using graduated rates and bracket adjustments.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions: If the taxable income is: The tax is: Not over $3,650 ........................ 1% of the taxable income Over $3,650 but not over $8,650 ........................ $36.50 plus 2% of the excess over $3,650 Over $8,650 but not over $13,650 ........................ $136.50 plus 4% of the excess over $8,650 Over $13,650 but not over $18,950 ........................ $336.50 plus 6% of the excess over $13,650 Over $18,950 but not over $23,950 ........................ $654.50 plus 8% of the excess over $18,950 Over $23,950 ........................ $1,054.50 plus 9.3% of the excess over $23,950 (2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage. (b) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident, except the head of a household as defined in Section 17042, a tax as calculated in paragraph (2). (2) The tax imposed under paragraph (1) shall be calculated by multiplying the “taxable income of a nonresident or part-year resident,” as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (a) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income. (c) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident for that taxable year, when the resident is the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of the state for the entire taxable year and for all prior taxable years for carryover items, deferred income, suspended losses, or suspended deductions: If the taxable income is: The tax is: Not over $7,300 ........................ 1% of the taxable income Over $7,300 but not over $17,300 ........................ $73 plus 2% of the excess over $7,300 Over $17,300 but not over $22,300 ........................ $273 plus 4% of the excess over $17,300 Over $22,300 but not over $27,600 ........................ $473 plus 6% of the excess over $22,300 Over $27,600 but not over $32,600 ........................ $791 plus 8% of the excess over $27,600 Over $32,600 ........................ $1,191 plus 9.3% of the excess over $32,600 (2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage. (d) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident when the nonresident or part-year resident is the head of a household, as defined in Section 17042, a tax as calculated in paragraph (2). (2) The tax imposed under paragraph (1) shall be calculated by multiplying the “taxable income of a nonresident or part-year resident,” as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (c) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income. (e) There shall be imposed for each taxable year upon the taxable income of every estate, trust, or common trust fund taxes equal to the amount computed under subdivision (a) for an individual having the same amount of taxable income. (f) The tax imposed by this part is not a surtax. (g) (1) Section 1(g) of the Internal Revenue Code, relating to certain unearned income of children taxed as if parent’s income, shall apply, except as otherwise provided. (2) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code is modified, for purposes of this part, by substituting “1 percent” for “10 percent.” (h) For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the income tax brackets prescribed in subdivisions (a) and (c). That computation shall be made as follows: (1) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year. (2) The Franchise Tax Board shall do both of the following: (A) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and dividing the result by 100. (B) Multiply the preceding taxable year income tax brackets by the inflation adjustment factor determined in subparagraph (A) and round off the resulting products to the nearest one dollar ($1). (i) (1) For purposes of this part, the term “taxable income of a nonresident or part-year resident” includes each of the following: (A) For any part of the taxable year during which the taxpayer was a resident of this state (as defined by Section 17014), all items of gross income and all deductions, regardless of source. (B) For any part of the taxable year during which the taxpayer was not a resident of this state, gross income and deductions derived from sources within this state, determined in accordance with Article 9 of Chapter 3 (commencing with Section 17301) and Chapter 11 (commencing with Section 17951). (2) For purposes of computing “taxable income of a nonresident or part-year resident” under paragraph (1), the amount of any net operating loss sustained in any taxable year during any part of which the taxpayer was not a resident of this state shall be limited to the sum of the following: (A) The amount of the loss attributable to the part of the taxable year in which the taxpayer was a resident. (B) The amount of the loss which, during the part of the taxable year the taxpayer is not a resident, is attributable to California source income and deductions allowable in arriving at taxable income of a nonresident or part-year resident. (3) For purposes of computing “taxable income of a nonresident or part-year resident” under paragraph (1), any carryover items, deferred income, suspended losses, or suspended deductions shall only be includable or allowable to the extent that the carryover item, deferred income, suspended loss, or suspended deduction was derived from sources within this state, calculated as if the nonresident or part-year resident, for the portion of the year he or she was a nonresident, had been a nonresident for all prior years. (Amended by Stats. 2010, Ch. 14, Sec. 5. (SB 401) Effective January 1, 2011. Note: This section was amended on June 8, 1982, by initiative Prop. 7.)
  167. 17041.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    Local governments and similar public entities may not levy or collect taxes on income, except that otherwise authorized license taxes measured by gross receipts are not prohibited.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17041.5. Notwithstanding any statute, ordinance, regulation, rule or decision to the contrary, no city, county, city and county, governmental subdivision, district, public and quasi-public corporation, municipal corporation, whether incorporated or not or whether chartered or not, shall levy or collect or cause to be levied or collected any tax upon the income, or any part thereof, of any person, resident or nonresident. This section shall not be construed so as to prohibit the levy or collection of any otherwise authorized license tax upon a business measured by or according to gross receipts. (Amended by Stats. 1965, Ch. 1319.)
  168. 17042.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section says Internal Revenue Code sections 2(b) and 2(c) apply to the definitions of head of household and certain married individuals living apart, unless another rule in this provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17042. Section 2(b) and (c) of the Internal Revenue Code, relating to definitions of head of household and certain married individuals living apart, respectively, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 9. Effective October 6, 1993.)
  169. 17043.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    A 1% additional tax applies to the part of a taxpayer’s taxable income above $1,000,000 for taxable years beginning on or after January 1, 2005.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17043. (a) For each taxable year beginning on or after January 1, 2005, in addition to any other taxes imposed by this part, an additional tax shall be imposed at the rate of 1 percent on that portion of a taxpayer’s taxable income in excess of one million dollars ($1,000,000). (b) For purposes of applying Part 10.2 (commencing with Section 18401) of Division 2, the tax imposed under this section shall be treated as if imposed under Section 17041. (c) The following shall not apply to the tax imposed by this section: (1) The provisions of Section 17039, relating to the allowance of credits. (2) The provisions of Section 17041, relating to filing status and recomputation of the income tax brackets. (3) The provisions of Section 17045, relating to joint returns. (Added November 2, 2004, by initiative Proposition 63, Sec. 12. Operative January 1, 2005, pursuant to Sec. 16 of Prop. 63.)
  170. 17045.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    For a joint return of spouses, the tax under Section 17041 is doubled; a surviving spouse’s return is treated the same as a joint return of spouses.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17045. In the case of a joint return of spouses under Section 18521, the tax imposed by Section 17041 shall be twice the tax which would be imposed if the taxable income were cut in one-half. For purposes of this section, a return of a surviving spouse (as defined in Section 17046) shall be treated as a joint return of spouses. (Amended by Stats. 2016, Ch. 50, Sec. 97. (SB 1005) Effective January 1, 2017.)
  171. 17046.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section defines “surviving spouse” by reference to Section 2(a) of the Internal Revenue Code.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17046. For purposes of this part, “surviving spouse” has the same meaning as that term is defined by Section 2(a) of the Internal Revenue Code. (Amended by Stats. 1985, Ch. 106, Sec. 126.)
  172. 17048.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    Some individuals must compute their taxes using Franchise Tax Board tax tables instead of the Section 17041 tax, subject to stated exceptions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17048. (a) In lieu of the tax imposed under Section 17041, individuals with taxable income of such amounts as prescribed by the Franchise Tax Board, shall compute their taxes under tax tables prescribed by the Franchise Tax Board. The tax tables shall reflect the tax imposed under Section 17041 in income progressions of not less than one hundred dollars ($100), giving effect to the marital or other status of the individual. For purposes of this part, the tax imposed by this section shall be treated as tax imposed by Section 17041. (b) Subdivision (a) shall not apply to any of the following: (1) An individual to whom subdivision (b) of Section 17504 (relating to the tax on lump-sum distributions) applies for the taxable year. (2) An individual making a return under Section 443(a)(1) of the Internal Revenue Code for a period of less than 12 months on account of a change in annual accounting period. (3) An estate or trust. (Amended by Stats. 1988, Ch. 1170, Sec. 1. Effective September 22, 1988.)
  173. 17049.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section lets an individual use a repayment-based deduction in computing tax for a year, but only if the deduction exceeds $3,000 and other stated conditions are met.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17049. (a) If an item of income was included in the gross income of an individual for a preceding taxable year or years because it appeared that the individual had an unrestricted right to that item, a deduction is allowable for the taxable year based on the repayment of the item by the individual during the taxable year, and the amount of that deduction exceeds three thousand dollars ($3,000), then the tax imposed by this part for the taxable year on that individual shall be the lesser of the following: (1) The tax for the taxable year computed with that deduction. (2) An amount equal to (A) the tax for the taxable year computed without that deduction, minus (B) the decrease in tax under this part for the preceding taxable year or years which would result solely from the exclusion of the item or portion thereof from the gross income required to be shown on the California return of that individual for the preceding taxable year or years. (b) If the decrease in tax determined under subparagraph (B) of paragraph (2) of subdivision (a) for the preceding taxable year or years exceeds the tax imposed for the taxable year, computed without the deduction, that excess shall be considered to be a payment of tax on the last day prescribed for the payment of tax for the taxable year, and shall be refunded or credited in the same manner as if it were an overpayment for the taxable year. (c) Subdivision (a) does not apply to any deduction allowable with respect to an item which was included in gross income by reason of the sale or other disposition of stock in trade of the taxpayer, or other property of a kind which would properly have been included in the inventory of the taxpayer if on hand at the close of the prior taxable year, or property held by the taxpayer primarily for sale to customers in the ordinary course of his or her trade or business. (d) If the tax imposed by this part for the taxable year is the amount determined under paragraph (2) of subdivision (a), then the deduction referred to in subdivision (a) shall not be taken into account for any purpose of this part, or Part 10.2 (commencing with Section 18401), other than this section. (e) For purposes of determining whether paragraph (1) or paragraph (2) of subdivision (a) applies, in any case where the exclusion referred to in subparagraph (B) of paragraph (2) of subdivision (a) results in a net operating loss or capital loss for the prior taxable year, or years, that loss shall, for purposes of computing the decrease in tax for the prior taxable year, or years, under subparagraph (B) of paragraph (2) of subdivision (a), be carried over to the same extent and in the same manner as is provided under Section 17276, 17276.1, 17276.2, 17276.4, 17276.5, or 17276.7, or Section 1212 of the Internal Revenue Code, as applicable for California purposes, except that no carryover beyond the taxable year shall be taken into account. (f) For purposes of this part, the net operating loss or capital loss described in subdivision (e) shall, after the application of paragraph (1) or (2) of subdivision (a) for the taxable year, be taken into account under Section 17276, 17276.1, 17276.2, 17276.4, 17276.5, or 17276.7, or Section 1212 of the Internal Revenue Code, as applicable for California purposes, for taxable years after the taxable year to the same extent and in the same manner as either of the following: (A) A net operating loss sustained for the taxable year, if paragraph (1) of subdivision (a) applied. (B) A net operating loss or capital loss sustained for the prior taxable year, or years, if paragraph (2) of subdivision (a) applied. (g) Regulations promulgated by the Secretary of the Treasury under Section 1341 of the Internal Revenue Code shall apply, except to the extent that those regulations conflict with this section, provisions of this part, or with regulations promulgated by the Franchise Tax Board. (Amended by Stats. 2005, Ch. 349, Sec. 1. Effective January 1, 2006.)
  174. 17052.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section creates and adjusts the California earned income tax credit and gives the Franchise Tax Board powers and duties to administer it.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17052. (a) (1) For each taxable year beginning on or after January 1, 2015, there shall be allowed against the “net tax,” as defined by Section 17039, an earned income tax credit in an amount equal to an amount determined in accordance with Section 32 of the Internal Revenue Code, relating to earned income, as applicable for federal income tax purposes for the taxable year, except as otherwise provided in this section. (2) (A) The amount of the credit determined under Section 32 of the Internal Revenue Code, relating to earned income, as modified by this section, shall be multiplied by the earned income tax credit adjustment factor for the taxable year. (B) Unless otherwise specified in the annual Budget Act, the earned income tax credit adjustment factor for a taxable year beginning on or after January 1, 2015, shall be 0 percent. (C) The earned income tax credit authorized by this section shall only be operative for taxable years for which resources are authorized in the annual Budget Act for the Franchise Tax Board to oversee and audit returns associated with the credit. (b) (1) In lieu of the table prescribed in Section 32(b)(1) of the Internal Revenue Code, relating to percentages, the credit percentage and the phaseout percentage shall be determined as follows: In the case of an eligible individual with: The credit percentage is: The phaseout percentage is: No qualifying children 7.65% 7.65% 1 qualifying child 34% 34% 2 qualifying children 40% 40% 3 or more qualifying children 45% 45% (2) (A) In lieu of the table prescribed in Section 32(b)(2)(A) of the Internal Revenue Code, the earned income amount and the phaseout amount shall be determined as follows: In the case of an eligible individual with: The earned income amount is: The phaseout amount is: No qualifying children $3,290 $3,290 1 qualifying child $4,940 $4,940 2 or more qualifying children $6,935 $6,935 (B) Section 32(b)(2)(B) of the Internal Revenue Code, relating to joint returns, shall not apply. (c) (1) Section 32(c)(1)(A)(ii)(I) of the Internal Revenue Code is modified by substituting “this state” for “the United States.” (2) For each taxable year beginning on or after January 1, 2018, Section 32(c)(1)(A)(ii)(II) of the Internal Revenue Code is modified by deleting “25 but not attained age 65” and inserting in lieu thereof the following: “18.” (3) Section 32(c)(2)(A) of the Internal Revenue Code is modified as follows: (A) Section 32(c)(2)(A)(i) of the Internal Revenue Code is modified by deleting “plus” and inserting in lieu thereof the following: “and only if such amounts are subject to withholding pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.” (B) Section 32(c)(2)(A)(ii) of the Internal Revenue Code shall not apply. (4) For taxable years beginning on or after January 1, 2017, paragraph (3) shall not apply and in lieu thereof Section 32(c)(2)(A) of the Internal Revenue Code is modified as follows: (A) Section 32(c)(2)(A)(i) of the Internal Revenue Code is modified by deleting “plus” and inserting in lieu thereof the following: “and only if such amounts are subject to withholding pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, plus.” (B) Section 32(c)(2)(A)(ii) of the Internal Revenue Code shall apply. (5) Section 32(c)(3)(C) of the Internal Revenue Code, relating to place of abode, is modified by substituting “this state” for “the United States.” (d) Section 32(i)(1) of the Internal Revenue Code is modified by substituting “$3,400” for “$2,200.” (e) (1) In lieu of Section 32(j) of the Internal Revenue Code, relating to inflation adjustments, for taxable years beginning on or after January 1, 2016, the amounts specified in paragraph (2) of subdivision (b) and in subdivision (d) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041. (2) For each taxable year beginning on or after January 1, 2018, and before January 1, 2019, when recomputing the amounts referenced in paragraph (1), the percentage change in the California Consumer Price Index shall be deemed to be the greater of 3.1 percent or the percentage change in the California Consumer Price Index as calculated under subdivision (h) of Section 17041 for that taxable year. (3) For each taxable year beginning on or after January 1, 2019, and before January 1, 2020, when recomputing the amounts referenced in paragraph (1), the percentage change in the California Consumer Price Index shall be deemed to be the greater of 3.5 percent or the percentage change in the California Consumer Price Index as calculated under subdivision (h) of Section 17041 for that taxable year. (f) If the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the taxpayer. (g) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed or improper payments from being made with respect to net earnings from self-employment. (B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board. (h) Notwithstanding any other law, amounts refunded pursuant to this section shall be treated in the same manner as the federal earned income refund for the purpose of determining eligibility to receive benefits under Division 9 (commencing with Section 10000) of the Welfare and Institutions Code or amounts of those benefits. (i) (1) For the purpose of implementing the credit allowed by this section for the 2015 taxable year, the Franchise Tax Board shall be exempt from the following: (A) Special Project Report requirements under State Administrative Manual Sections 4819.36, 4945, and 4945.2. (B) Special Project Report requirements under Statewide Information Management Manual Section 30. (C) Section 11.00 of the 2015 Budget Act. (D) Sections 12101, 12101.5, 12102, and 12102.1 of the Public Contract Code. (2) The Franchise Tax Board shall formally incorporate the scope, costs, and schedule changes associated with the implementation of the credit allowed by this section in its next anticipated Special Project Report for its Enterprise Data to Revenue Project. (j) (1) In accordance with Section 41 of the Revenue and Taxation Code, the purpose of the California Earned Income Tax Credit is to reduce poverty among California’s poorest working families and individuals. To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall annually prepare a written report on the following: (A) The number of tax returns claiming the credit. (B) The number of individuals represented on tax returns claiming the credit. (C) The average credit amount on tax returns claiming the credit. (D) The distribution of credits by number of dependents and income ranges. The income ranges shall encompass the phase-in and phaseout ranges of the credit. (E) Using data from tax returns claiming the credit, including an estimate of the federal tax credit determined under Section 32 of the Internal Revenue Code, an estimate of the number of families who are lifted out of deep poverty by the credit and an estimate of the number of families who are lifted out of deep poverty by the combination of the credit and the federal tax credit. For the purposes of this subdivision, a family is in “deep poverty” if the income of the family is less than 50 percent of the federal poverty threshold. (2) The Franchise Tax Board shall provide the written report to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Governance and Finance, the Assembly Committee on Revenue and Taxation, and the Senate and Assembly Committees on Human Services. (k) The tax credit allowed by this section shall be known as the California Earned Income Tax Credit. (l) The amendments made to this section by Chapter 722 of the Statutes of 2016 shall apply to taxable years beginning on or after January 1, 2016. (m) (1) For each taxable year beginning on or after January 1, 2017, and before January 1, 2018, if the amount of credit computed pursuant to subdivisions (a) and (b) is less than or equal to one hundred dollars ($100) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with no qualifying children, or less than or equal to two hundred fifty dollars ($250) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with one or more qualifying children, and the earned income amount is greater than or equal to the corresponding amount in the table set forth in paragraph (2) below, then in lieu of the table prescribed in paragraph (1) of subdivision (b), the credit percentage and the phaseout percentage shall be determined as follows: In the case of an eligible individual with: The credit percentage is: The phaseout percentage is: No qualifying children 2.20%1.22%1 qualifying child 3.10%2.29%2 qualifying children 2.13%3.45%3 or more qualifying children 2.12%3.49% (2) For each taxable year beginning on or after January 1, 2017, and before January 1, 2018, if the amount of credit computed pursuant to subdivisions (a) and (b) is less than or equal to one hundred dollars ($100) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with no qualifying children, or less than or equal to two hundred fifty dollars ($250) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with one or more qualifying children, then in lieu of the table prescribed in subparagraph (A) of paragraph (2) of subdivision (b), the earned income amount and the phaseout amount shall be determined as follows: In the case of an eligible individual with: The earned income amount is: The phaseout amount is: No qualifying children $5,354$5,3541 qualifying child $9,484$9,4842 qualifying children $13,794$13,7943 or more qualifying children $13,875$13,875 (n) (1) For each taxable year beginning on or after January 1, 2018, and before January 1, 2019, if the amount of credit computed pursuant to subdivisions (a) and (b) is less than or equal to one hundred three dollars ($103) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with no qualifying children, or less than or equal to two hundred fifty-eight dollars ($258) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with one or more qualifying children, and the earned income amount is greater than or equal to the corresponding amount in the table set forth in paragraph (2) below, then in lieu of the table prescribed in paragraph (1) of subdivision (b), the credit percentage and the phaseout percentage shall be determined as follows: In the case of an eligible individual with: The credit percentage is: The phaseout percentage is: No qualifying children 2.20%1.08%1 qualifying child 3.10%2.00%2 qualifying children 2.13%2.82%3 or more qualifying children 2.12%2.85% (2) For each taxable year beginning on or after January 1, 2018, and before January 1, 2019, if the amount of credit computed pursuant to subdivisions (a) and (b) is less than or equal to one hundred three dollars ($103) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with no qualifying children, or less than or equal to two hundred fifty-eight dollars ($258) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with one or more qualifying children, then in lieu of the table prescribed in subparagraph (A) of paragraph (2) of subdivision (b), the earned income amount and the phaseout amount shall be determined as follows: In the case of an eligible individual with: The earned income amount is: The phaseout amount is: No qualifying children $5,520$5,5201 qualifying child $9,778$9,7782 qualifying children $14,222$14,2223 or more qualifying children $14,305$14,305 (o) (1) For each taxable year beginning on or after January 1, 2019, if the amount of credit computed pursuant to subdivisions (a) and (b) is less than or equal to two hundred dollars ($200) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with no qualifying children, or less than or equal to five hundred five dollars ($505) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with one or more qualifying children, and the earned income amount is greater than or equal to the corresponding amount in the table set forth in paragraph (2) below, then in lieu of the table prescribed in paragraph (1) of subdivision (b), the credit percentage and the phaseout percentage shall be determined as follows: In the case of an eligible individual with: The credit percentage is: The phaseout percentage is: No qualifying children5.43%0.92%1 qualifying child 6.33%2.88%2 qualifying children 4.20%3.75%3 or more qualifying children 4.15%3.78% (2) For each taxable year beginning on or after January 1, 2019, if the amount of credit computed pursuant to subdivisions (a) and (b) is less than or equal to two hundred dollars ($200) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with no qualifying children, or less than or equal to five hundred five dollars ($505) multiplied by the ratio of the earned income tax credit adjustment factor for that taxable year divided by 0.85 for an eligible individual with one or more qualifying children, then in lieu of the table prescribed in subparagraph (A) of paragraph (2) of subdivision (b), the earned income amount and the phaseout amount shall be determined as follows: In the case of an eligible individual with: The earned income amount is: The phaseout amount is: No qualifying children$4,334$4,3341 qualifying child $9,381$9,3812 qualifying children $14,137$14,1373 or more qualifying children $14,302$14,302 (3) For taxable years beginning on or after January 1, 2020, and until and including the taxable year in which the minimum wage, as defined in paragraph (1) of subdivision (b) of Section 1182.12 of the Labor Code, is set at fifteen dollars ($15) per hour, both of the following shall occur: (A) The amounts in paragraphs (1) and (2) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041. (B) The phaseout percentage for each of the four categories of eligible individuals shall be recalculated by the Franchise Tax Board in such a manner that, for a taxpayer with an earned income of thirty thousand dollars ($30,000), the calculated amount of credit is equal to zero. (4) (A) For taxable years beginning after the taxable year in which the minimum wage, as defined in paragraph (1) of subdivision (b) of Section 1182.12 of the Labor Code, is set at fifteen dollars ($15) per hour, the amounts in paragraphs (1) and (2) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041. (B) For taxable years beginning after the taxable year in which the minimum wage, as defined in paragraph (1) of subdivision (b) of Section 1182.12 of the Labor Code, is set at fifteen dollars ($15) per hour, the phaseout percentages for the prior taxable year, as recalculated under subparagraph (B) of paragraph (3), shall apply. (p) For each taxable year beginning on or after January 1, 2020, Section 32(m) of the Internal Revenue Code, relating to identification numbers, is modified as follows: (1) By deleting “(other than a social security number issued pursuant to clause (II) (or that portion of clause (III) that relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security Act).” (2) By substituting “federal individual taxpayer identification number or a social security number” for “social security number.” (q) An eligible individual, eligible individual’s spouse, or qualifying child using a federal individual taxpayer identification number as authorized under subdivision (p) shall: (1) Upon request of the Franchise Tax Board, provide: (A) Identifying documents acceptable for purposes of obtaining a California driver’s license or identification card as authorized by subdivisions (a), (b), and (c) of Section 12801.9 of the Vehicle Code and related regulations adopted for purposes of establishing documents acceptable to prove identity. (B) Identifying documents used to report earned income for the taxable year. (2) Upon receiving a valid social security number issued to that individual by the Social Security Administration, notify the Franchise Tax Board, in the time and manner prescribed by the Franchise Tax Board. (r) The Legislature finds and declares that, to the extent they are otherwise qualified for a credit under this section, undocumented persons are eligible for the tax credit authorized by this section within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code. (Amended (as amended by Stats. 2022, Ch. 72, Sec. 1) by Stats. 2022, Ch. 482, Sec. 5. (AB 1766) Effective January 1, 2023.)
  175. 17052.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section creates a Young Child Tax Credit for qualified taxpayers and sets the credit amount, income-based reduction rules, and related Franchise Tax Board reporting and rulemaking duties.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17052.1. (a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed against the “net tax,” as defined by Section 17039, a young child tax credit to a qualified taxpayer, in an amount as determined under paragraph (2). (2) (A) (i) The amount of the young child tax credit shall be equal to one thousand one hundred seventy-six dollars ($1,176), multiplied by the earned income tax credit adjustment factor for the taxable year as specified for in Section 17052. (ii) The amount of the young child tax credit specified under clause (i) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041. (B) The young child tax credit allowable in any taxable year to any qualified taxpayer shall be limited to the maximum amount specified in clause (i) of subparagraph (A) as recomputed under clause (ii) of subparagraph (A). (C) (i) The young child tax credit shall be reduced by twenty dollars ($20) for each one hundred dollars ($100), or fraction thereof, by which the qualified taxpayer’s earned income, as defined in Section 17052, exceeds the “threshold amount.” For purposes of this section, the “threshold amount” shall be twenty-five thousand dollars ($25,000). (ii) (I) For each taxable year beginning on or after January 1, 2022, and before January 1, 2023, the twenty dollars ($20) in clause (i) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041, except that the resulting products shall be rounded off to the nearest cent. (II) For taxable years beginning after the taxable year in which the minimum wage, as defined in paragraph (1) of subdivision (b) of Section 1182.12 of the Labor Code, is set at fifteen dollars ($15) per hour, and before January 1, 2024, the amount calculated under subclause (I) shall substitute for the twenty dollars ($20) in clause (i). (III) The Franchise Tax Board shall calculate a graduated reduction amount in such a manner that, for a qualified taxpayer with earned income of one dollar ($1) or more in excess of the maximum earned income that results in a credit amount greater than zero dollars ($0) pursuant to Section 17052, the amount of the credit under this section is equal to zero. For taxable years beginning on or after January 1, 2024, the graduated reduction amount calculated pursuant to this subclause shall be substituted for the twenty dollars ($20) in clause (i). (iii) For taxable years beginning after the taxable year in which the minimum wage, as defined in paragraph (1) of subdivision (b) of Section 1182.12 of the Labor Code, is set at fifteen dollars ($15) per hour, the “threshold amount” in this subparagraph shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041. (D) The young child tax credit authorized by this section shall only be operative for taxable years for which resources are authorized in the annual Budget Act for the Franchise Tax Board to oversee and audit returns associated with the credit allowed under Section 17052. (b) (1) “Qualified taxpayer” means an eligible individual who has at least one qualifying child and who satisfies either of the following: (A) Has been allowed a tax credit under Section 17052. (B) Meets all of the following requirements: (i) Would otherwise have been allowed a tax credit under Section 17052, but has earned income, as defined in Section 32(c)(2) of the Internal Revenue Code, as modified by Section 17052, of zero dollars ($0) or less. (ii) Does not have net losses in excess of thirty thousand dollars ($30,000) in the taxable year. (iii) Does not have wages, salaries, tips, and other employee compensation in excess of thirty thousand dollars ($30,000) in the taxable year. (2) For each taxable year beginning on or after January 1, 2022, the amounts specified under clauses (ii) and (iii) of subparagraph (B) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041. (c) “Qualifying child” shall have the same meaning as under Section 17052, except that the child shall be younger than six years of age as of the last day of the taxable year. (d) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed or improper payments from being made with respect to net earnings from self-employment. (B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board. (e) If the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. (f) Notwithstanding any other law, amounts refunded pursuant to this section shall be treated in the same manner as the federal earned income refund for the purpose of determining eligibility to receive benefits under Division 9 (commencing with Section 10000) of the Welfare and Institutions Code or amounts of those benefits. (g) (1) In accordance with Section 41, the purpose of the Young Child Tax Credit is to reduce poverty among California’s poorest working families and young children. To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall annually prepare a written report on the following: (A) The number of tax returns claiming the credit. (B) The number of qualifying children represented on tax returns claiming the credit. (C) The average credit amount on tax returns claiming the credit. (2) The Franchise Tax Board shall provide the written report to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Governance and Finance, the Assembly Committee on Revenue and Taxation, and the Senate and Assembly Committees on Human Services. (h) The Legislature finds and declares that, to the extent they are otherwise qualified for a credit under this section, undocumented persons are eligible for the tax credit authorized by this section within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code. (i) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2022, except as provided in subparagraph (C) of paragraph (2) of subdivision (a). (Amended by Stats. 2025, Ch. 67, Sec. 179. (AB 1170) Effective January 1, 2026.)
  176. 17052.10.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section gives qualified taxpayers a credit against net tax equal to a defined qualified amount, with carryover allowed if the credit exceeds net tax.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17052.10. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to the qualified amount. (b) For purposes of this section: (1) “Electing qualified entity” means a qualified entity, as defined by Section 19902, that has elected to pay the elective tax under Part 10.4 (commencing with Section 19900). (2) “Qualified amount” means an amount equal to 9.3 percent of the sum of the qualified taxpayer’s guaranteed payments as defined by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, and the qualified taxpayer’s pro rata share or distributive share, as applicable, of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in qualified net income, as defined in Section 19900, subject to the election made by an electing qualified entity under Part 10.4 (commencing with Section 19900). (3) “Qualified taxpayer” means: (A) A taxpayer, as defined in Section 17004, excluding partnerships, that is a partner, shareholder, or member of an electing qualified entity that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19900, of the electing qualified entity. (B) “Qualified taxpayer” does not include a business entity that is disregarded for federal tax purposes, as described in Section 23038, or its partners or members. (C) Subparagraph (B) shall not apply to a limited liability company that is disregarded for federal tax purposes, as described in Section 23038, and meets both of the following: (i) Is owned by a taxpayer, as defined in Section 17004, excluding partnerships, that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19900, of the electing qualified entity. (ii) Is a partner, shareholder, or member of an electing qualified entity. (c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding four years, if necessary, until the credit is exhausted. (d) Notwithstanding subdivision (a), a qualified taxpayer that is a partner, shareholder, or member of an electing qualified entity that makes the election under Section 19900 for their taxable year beginning on or after January 1, 2025, and before January 1, 2026, and files its return on a fiscal year basis pursuant to Section 18566, shall be allowed the credit pursuant to this section in the qualified taxpayer’s taxable year beginning on or after January 1, 2026, and before January 1, 2027. (e) (1) Any disallowance of a credit under this section due to any of the following conditions shall be treated as a mathematical error appearing on the return: (A) Timely payment was not made under subdivision (b) of Section 19904. (B) Payments made for the taxable year exceed the elective tax computed under Part 10.4 (commencing with Section 19900). (C) No election was made or allowed under Part 10.4 (commencing with Section 19900). (2) Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. (f) (1) For each taxable year the credit is allowed, for purposes of Sections 18001 and 18002, “‘net tax’ (as defined by Section 17039) payable under this part” shall be increased by the amount of credit under this section that reduced the “net tax,” as defined in Section 17039, in that taxable year. (2) This subdivision shall apply for taxable years beginning on or after January 1, 2022, and before January 1, 2027. (3) Section 41 shall not apply to the expansion of existing tax expenditures resulting from application of this subdivision. (g) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this section. (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (h) For the purposes of complying with Section 41, the Legislature finds and declares that the goal of this tax credit is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19. (i) The amendments made to this section by Chapter 3 of the Statutes of 2022 shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2027. (j) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2026, and before January 1, 2027. (k) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. (Amended by Stats. 2025, Ch. 17, Sec. 7. (SB 132) Effective June 27, 2025. Repealed as of December 1, 2027, by its own provisions.)
  177. 17052.11.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section gives qualified taxpayers a credit against net tax equal to the qualified amount, allows certain carryovers, and lets the Franchise Tax Board adopt implementing regulations.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17052.11. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to the qualified amount. (b) For purposes of this section: (1) “Electing qualified entity” means a qualified entity, as defined by Section 19912, that has elected to pay the elective tax under Part 10.4.1 (commencing with Section 19910). (2) (A) “Qualified amount” means an amount equal to 9.3 percent of the sum of the qualified taxpayer’s guaranteed payments as defined by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, and the qualified taxpayer’s pro rata share or distributive share, as applicable, of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in qualified net income, as defined in Section 19910, subject to the election made by an electing qualified entity under Part 10.4.1 (commencing with Section 19910). (B) In the case of a qualified taxpayer who is a partner, shareholder, or member of an electing qualified entity that does not make the payment required by paragraph (1) of subdivision (a) of Section 19914, or makes a payment that is less than the amount due pursuant to paragraph (1) of subdivision (a) of Section 19914, “qualified amount” means an amount equal to the amount described in subparagraph (A), reduced by an amount equal to 12.5 percent of the qualified taxpayer’s pro rata share of the amount due but not paid under paragraph (1) of subdivision (a) of Section 19914. (3) “Qualified taxpayer” means: (A) A taxpayer, as defined in Section 17004, excluding partnerships, that is a partner, shareholder, or member of an electing qualified entity that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19910, of the electing qualified entity. (B) “Qualified taxpayer” does not include a business entity that is disregarded for federal tax purposes, as described in Section 23038, or its partners or members. (C) Subparagraph (B) shall not apply to a limited liability company that is disregarded for federal tax purposes, as described in Section 23038, and meets both of the following: (i) Is owned by a taxpayer, as defined in Section 17004, excluding partnerships, that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19910, of the electing qualified entity. (ii) Is a partner, shareholder, or member of an electing qualified entity. (c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding four years, if necessary, until the credit is exhausted. (d) Notwithstanding subdivision (a), a qualified taxpayer that is a partner, shareholder, or member of an electing qualified entity that makes the election under Section 19910 for their taxable year beginning on or after January 1, 2030, and before January 1, 2031, and files its return on a fiscal year basis pursuant to Section 18566, shall be allowed the credit pursuant to this section in the qualified taxpayer’s taxable year beginning on or after January 1, 2031, and before January 1, 2032. (e) (1) Any disallowance of a credit under this section due to any of the following conditions shall be treated as a mathematical error appearing on the return: (A) Timely payment was not made under subdivision (b) of Section 19914. (B) Payments made for the taxable year exceed the elective tax computed under Part 10.4.1 (commencing with Section 19910). (C) No election was made or allowed under Part 10.4.1 (commencing with Section 19910). (D) The amount of the credit claimed exceeds the credit amount determined pursuant to subparagraph (B) of paragraph (2) of subdivision (b). (2) Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. (f) For each taxable year the credit is allowed, for purposes of Sections 18001 and 18002, “‘net tax’ (as defined by Section 17039) payable under this part” shall be increased by the amount of credit under this section that reduced the “net tax,” as defined in Section 17039, in that taxable year. (g) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this section. (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (h) This section shall only become operative if the operation of Section 164(b)(6) of the Internal Revenue Code, relating to the limitation on individual deductions for taxable years 2018 through 2025, is extended. (i) This section shall remain in effect only until December 1, 2032, and as of that date is repealed. (Added by Stats. 2025, Ch. 17, Sec. 8. (SB 132) Effective June 27, 2025. Conditionally operative as prescribed by its own provisions. Repealed as of December 1, 2032, by its own provisions.)
  178. 17052.12.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    Taxpayers may claim a research credit against net tax, subject to this section’s California-specific modifications and exclusions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17052.12. For each taxable year beginning on or after January 1, 1987, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, for the taxable year an amount determined in accordance with Section 41 of the Internal Revenue Code, relating to credit for increasing research activities, except as follows: (a) For each taxable year beginning before January 1, 1997, the reference to “20 percent” in Section 41(a)(1) of the Internal Revenue Code is modified to read “8 percent.” (b) (1) For each taxable year beginning on or after January 1, 1997, and before January 1, 1999, the reference to “20 percent” in Section 41(a)(1) of the Internal Revenue Code is modified to read “11 percent.” (2) For each taxable year beginning on or after January 1, 1999, and before January 1, 2000, the reference to “20 percent” in Section 41(a)(1) of the Internal Revenue Code is modified to read “12 percent.” (3) For each taxable year beginning on or after January 1, 2000, the reference to “20 percent” in Section 41(a)(1) of the Internal Revenue Code is modified to read “15 percent.” (c) Section 41(a)(2) of the Internal Revenue Code shall not apply. (d) “Qualified research” shall include only research conducted in California. (e) In the case where the credit allowed under this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding years if necessary, until the credit has been exhausted. (f) (1) With respect to any expense paid or incurred after the operative date of Section 6378, Section 41(b)(1) of the Internal Revenue Code, relating to qualified research expenses, is modified to exclude from the definition of “qualified research expense” any amount paid or incurred for tangible personal property that is eligible for the exemption from sales or use tax provided by Section 6378. (2) For each taxable year beginning on or after January 1, 1998, the reference to “Section 501(a)” in Section 41(b)(3)(C)(ii)(I) of the Internal Revenue Code, relating to qualified research consortium, is modified to read “this part or Part 11 (commencing with Section 23001).” (g) (1) (A) For each taxable year beginning on or after January 1, 2000, and before January 1, 2025, the election of alternative incremental credit under Section 41(c)(4) of the Internal Revenue Code, as applicable for state purposes, shall apply as that section was in effect on January 1, 2015, and as modified as follows: (i) The reference to “3 percent” in Section 41(c)(4)(A)(i) of the Internal Revenue Code is modified to read “one and forty-nine hundredths of one percent.” (ii) The reference to “4 percent” in Section 41(c)(4)(A)(ii) of the Internal Revenue Code is modified to read “one and ninety-eight hundredths of one percent.” (iii) The reference to “5 percent” in Section 41(c)(4)(A)(iii) of the Internal Revenue Code is modified to read “two and forty-eight hundredths of one percent.” (B) Section 41(c)(4)(B) shall not apply and in lieu thereof an election under Section 41(c)(4)(A) of the Internal Revenue Code may be made for any taxable year of the taxpayer beginning on or after January 1, 1998, and before January 1, 2025. That election shall apply to the taxable year for which made and all succeeding taxable years beginning before January 1, 2025, unless revoked with the consent of the Franchise Tax Board. (2) (A) For taxable years beginning on or after January 1, 2025, Section 41(c)(4) of the Internal Revenue Code, relating to election of alternative simplified credit, shall apply, and is modified as follows: (i) The reference to “14 percent” in Section 41(c)(4)(A) of the Internal Revenue Code is modified to read “3 percent.” (ii) The reference to “6 percent” in Section 41(c)(4)(B)(ii) of the Internal Revenue Code is modified to read “1.3 percent.” (B) Section 41(c)(4)(C) of the Internal Revenue Code shall not apply and in lieu thereof an election under Section 41(c)(4)(A) of the Internal Revenue Code may be made for any taxable year of the taxpayer beginning on or after January 1, 2025. That election shall apply to the taxable year for which made and all succeeding taxable years unless revoked with the consent of the Franchise Tax Board. (h) Section 41(c)(6) of the Internal Revenue Code, relating to gross receipts, is modified to take into account only those gross receipts from the sale of property held primarily for sale to customers in the ordinary course of the taxpayer’s trade or business that is delivered or shipped to a purchaser within this state, regardless of f.o.b. point or any other condition of the sale. (i) Section 41(h) of the Internal Revenue Code, relating to treatment of credit for qualified small businesses, shall not apply. (j) Section 41(g) of the Internal Revenue Code, relating to special rule for passthrough of credit, is modified by each of the following: (1) The last sentence shall not apply. (2) If the amount determined under Section 41(a) of the Internal Revenue Code for any taxable year exceeds the limitation of Section 41(g) of the Internal Revenue Code, that amount may be carried over to other taxable years under the rules of subdivision (e); except that the limitation of Section 41(g) of the Internal Revenue Code shall be taken into account in each subsequent taxable year. (k) Section 41(a)(3) of the Internal Revenue Code shall not apply. (l) Section 41(b)(3)(D) of the Internal Revenue Code, relating to amounts paid to eligible small businesses, universities, and federal laboratories, shall not apply. (m) Section 41(f)(6), relating to energy research consortium, shall not apply. (Amended by Stats. 2025, Ch. 231, Sec. 3. (SB 711) Effective October 1, 2025.)
  179. 17052.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section creates a foster youth tax credit for qualified taxpayers and sets the credit amount, reduction rules, verification duties, and reporting requirements.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17052.2. (a) (1) For each taxable year beginning on or after January 1, 2022, there shall be allowed against the “net tax,” as defined by Section 17039, a foster youth tax credit to a qualified taxpayer, in an amount as determined under paragraph (2). (2) (A) The amount of the foster youth tax credit shall be equal to one thousand one hundred seventy-six dollars ($1,176), multiplied by the earned income tax credit adjustment factor for the taxable year, as specified in Section 17052. (B) For taxable years beginning on or after January 1, 2022, the amount in subparagraph (A) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041. (C) (i) The foster youth tax credit shall be reduced by twenty dollars ($20) for each one hundred dollars ($100), or fraction thereof, by which the qualified taxpayer’s earned income, as defined in Section 17052, exceeds the threshold amount. (ii) (I) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, the twenty dollars ($20) in clause (i) shall be recomputed in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041, except that for purposes of this clause, subparagraph (B) of paragraph (2) of subdivision (h) of Section 17041 shall be modified by substituting “nearest cent” for “nearest one dollar ($1).” (II) For taxable years beginning after the taxable year in which the minimum wage, as defined in paragraph (1) of subdivision (b) of Section 1182.12 of the Labor Code, is set at fifteen dollars ($15) per hour, and before January 1, 2024, the amount calculated under subclause (I) shall substitute for the twenty dollars ($20) in clause (i). (III) The Franchise Tax Board shall calculate a graduated reduction amount in such a manner that, for a qualified taxpayer with earned income of one dollar ($1) or more in excess of the maximum earned income that results in a credit amount greater than zero dollars ($0) pursuant to Section 17052, the amount of the credit under this section is equal to zero. For taxable years beginning on or after January 1, 2024, the graduated reduction amount calculated pursuant to this subclause shall be substituted for the twenty dollars ($20) in clause (i). (iii) For taxable years beginning after the taxable year in which the minimum wage, as defined in paragraph (1) of subdivision (b) of Section 1182.12 of the Labor Code, is set at fifteen dollars ($15) per hour, the threshold amount shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041. (b) The foster youth tax credit authorized by this section shall only be operative for taxable years for which resources are authorized in the annual Budget Act for the Franchise Tax Board to oversee and audit returns associated with the earned income tax credit allowed under Section 17052. (c) For purposes of this section, the following definitions shall apply: (1) “Qualified taxpayer,” means an individual who satisfies all of the following: (A) Has been allowed a tax credit under Section 17052 for the taxable year. (B) Is 18 to 25 years of age, inclusive, as of the last day of the taxable year. (C) Was in foster care while 13 years of age or older in an AFDC-FC placement, as described in Section 11402 of the Welfare and Institutions Code, including a tribally approved home, as defined in subdivision (r) of Section 224.1 of the Welfare and Institutions Code, or Approved Relative Caregiver Funding Program eligible placement, as described in Article 6 (commencing with Section 11450) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, by a Title IV-E agency, pursuant to a voluntary placement agreement or a juvenile court order. (2) “Threshold amount” shall be twenty-five thousand dollars ($25,000). (3) “Title IV-E agency” means either of the following: (A) A county child welfare agency or probation department that administers foster care placements under Title IV-E of the federal Social Security Act (Part E (commencing with Section 670) of Subchapter IV of Chapter 7 of Title 42 of the United States Code). (B) An Indian tribe, tribal organization, or tribal consortium located in California or with lands that extend into the state that has an agreement with the State Department of Social Services pursuant to Section 10553.1 of the Welfare and Institutions Code to administer foster care placement under Title IV-E of the federal Social Security Act (Part E (commencing with Section 670) of Subchapter IV of Chapter 7 of Title 42 of the United States Code). (d) (1) As provided for in Section 10850.8 of the Welfare and Institutions Code, and subject to federal approvals or waivers, the State Department of Social Services shall provide to the Franchise Tax Board the data regarding a qualified taxpayer placed by a Title IV-E agency that may be necessary to verify that an individual qualifies for the foster youth tax credit. The data provided shall remain confidential and shall be used only for purposes directly connected with the foster youth tax credit. (2) In the event federal approval or waivers pursuant to paragraph (1) are not provided, the Franchise Tax Board and the State Department of Social Services shall explore alternative methods to verify foster care status for individuals described in paragraph (1) of subdivision (c) in a manner consistent with state and federal law. (3) The State Department of Social Services shall seek all appropriate federal waivers or approvals for the implementation of this subdivision as necessary. This subdivision shall be implemented only if necessary federal waivers or approvals are granted. (e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. (2) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed or improper payments from being made with respect to net earnings from self-employment. (3) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (f) If the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. (g) Notwithstanding any other law, amounts refunded pursuant to this section shall be treated in the same manner as the federal earned income refund for the purpose of determining eligibility to receive benefits under Division 9 (commencing with Section 10000) of the Welfare and Institutions Code or amounts of those benefits. (h) Notwithstanding any other law, the payment authorized pursuant to this section shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of such individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (g). With respect to a state or local program, this subdivision shall only be implemented to the extent that it does not conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program. (i) The Legislature finds and declares that, to the extent they are otherwise qualified for a credit under this section, undocumented persons are eligible for the tax credit authorized by this section within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code. (j) (1) In accordance with Section 41, the purpose of the Foster Care Tax Credit is to reduce poverty among California’s young adults who have been in the foster care program. To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall annually prepare a written report on the following: (A) The number of tax returns claiming the credit. (B) The average credit amount on tax returns claiming the credit. (2) The Franchise Tax Board shall provide the written report, in compliance with Section 9795 of the Government Code, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Governance and Finance, the Assembly Committee on Revenue and Taxation, and the Senate and Assembly Committees on Human Services. (3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542 under Article 2 (commencing with 19542) of Chapter 7 of Part 10.2. (Amended by Stats. 2024, Ch. 34, Sec. 17. (SB 167) Effective June 27, 2024.)
  180. 17052.25.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    Taxpayers may claim a credit for qualifying adoption costs, equal to 50% of those costs, subject to a $2,500 cap per child.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17052.25. (a) For each taxable year beginning on or after January 1, 1994, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the costs paid or incurred by a taxpayer for the adoption of any minor child who is a citizen or legal resident of the United States and was in the custody of a public agency of either this state or a political subdivision of this state. The credit shall not exceed two thousand five hundred dollars ($2,500) per minor child. (b) “Costs” eligible for the credit pursuant to subdivision (a) shall include the following: (1) Fees for required services of either the Department of Social Services or a licensed adoption agency. (2) Travel and related expenses for the adoptive family that are directly related to the adoption process. (3) Medical fees and expenses that are not reimbursed by insurance and are directly related to the adoption process. (c) The credit authorized by this section shall be claimed for the taxable year in which the decree or order of adoption is entered pursuant to Section 8612 of the Family Code. However, the allowable credit claimed may include any costs of that adoption paid or incurred in any prior taxable year. (d) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding years if necessary, until the total credit of two thousand five hundred dollars ($2,500) per minor child is exhausted. (e) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed under this section. (Amended by Stats. 1998, Ch. 322, Sec. 9. Effective August 20, 1998.)
  181. 17052.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section allows a credit against net tax for household and dependent care expenses, with the credit percentage tied to adjusted gross income and taxable year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17052.6. (a) (1) For each taxable year beginning on or after January 1, 2000, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount determined in accordance with Section 21 of the Internal Revenue Code, relating to expense for household and dependent care services necessary for gainful employment, as applicable for federal income tax purposes for the taxable year, except as otherwise provided in this section. (2) The amount of the credit shall be a percentage, as provided in subdivision (b) of the allowable federal credit without taking into account whether there is a federal tax liability. (b) For the purposes of subdivision (a), the percentage of the allowable federal credit shall be determined as follows: (1) For taxable years beginning before January 1, 2003: If the adjusted gross income is: The percentage of credit is: $40,000 or less ........................ 63% Over $40,000 but not over $70,000 ........................ 53% Over $70,000 but not over $100,000 ........................ 42% Over $100,000 ........................ 0% (2) For taxable years beginning on or after January 1, 2003: If the adjusted gross income is: The percentage of credit is: $40,000 or less ........................ 50% Over $40,000 but not over $70,000 ........................ 43% Over $70,000 but not over $100,000 ........................ 34% Over $100,000 ........................ 0% (c) For purposes of this section, “adjusted gross income” means adjusted gross income as computed for purposes of paragraph (2) of subdivision (h) of Section 17024.5. (d) The credit authorized by this section shall be limited, as follows: (1) Employment-related expenses, within the meaning of Section 21 of the Internal Revenue Code, shall be limited to expenses for household services and care provided in this state. (2) Earned income, within the meaning of Section 21(d) of the Internal Revenue Code, shall be limited to earned income subject to tax under this part. For purposes of this paragraph, compensation received by a member of the armed forces for active services as a member of the armed forces, other than pensions or retired pay, shall be considered earned income subject to tax under this part, whether or not the member is domiciled in this state. (e) For purposes of this section, Section 21(b)(1) of the Internal Revenue Code, relating to a qualifying individual, is modified to additionally provide that a child, as defined in Section 152(f)(1) of the Internal Revenue Code, shall be treated, for purposes of Section 152 of the Internal Revenue Code, as applicable for purposes of this section, as receiving over one-half of their support during the calendar year from the parent having custody for a greater portion of the calendar year, that parent shall be treated as a “custodial parent,” within the meaning of Section 152(e) of the Internal Revenue Code, as applicable for purposes of this section, and the child shall be treated as a qualifying individual under Section 21(b)(1) of the Internal Revenue Code, as applicable for purposes of this section, if both of the following apply: (1) The child receives over one-half of their support during the calendar year from their parents who never married each other and who lived apart at all times during the last six months of the calendar year. (2) The child is in the custody of one or both of their parents for more than one-half of the calendar year. (f) Section 21(g) of the Internal Revenue Code, relating to special rules for 2021, as added by Section 9631(a) of the American Rescue Plan Act of 2021 (Public Law 117-2), shall not apply. (Amended by Stats. 2025, Ch. 231, Sec. 2. (SB 711) Effective October 1, 2025.)
  182. 17053.12.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    A taxpayer who transports donated agricultural products may claim a credit for 50% of the transportation costs, and may carry forward any excess credit.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.12. (a) In the case of a taxpayer who transports any agricultural product donated in accordance with Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code, for taxable years beginning on or after January 1, 1996, there shall be allowed as a credit against the “net tax” (as defined by Section 17039), an amount equal to 50 percent of the transportation costs paid or incurred by the taxpayer in connection with the transportation of that donated agricultural product. (b) If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer which is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed. (c) Upon delivery of the donated agricultural product by a taxpayer authorized to claim a credit pursuant to subdivision (a), the nonprofit charitable organization shall provide a certificate to the taxpayer who transported the agricultural product. The certificate shall contain a statement signed and dated by a person authorized by that organization that the product is donated under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code. The certificate shall also contain the following information: the type and quantity of product donated, the distance transported, the name of the transporter, the name of the taxpayer donor, and the name and address of the donee. Upon the request of the Franchise Tax Board, the taxpayer shall provide a copy of the certification to the Franchise Tax Board. (d) In the case where any credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding years if necessary, until the credit has been exhausted. (Added by Stats. 1996, Ch. 954, Sec. 9. Effective September 26, 1996.)
  183. 17053.30.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    Taxpayers may claim a credit equal to 55% of the fair market value of a qualified contribution, subject to date and recipient rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.30. (a) There shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 55 percent of the fair market value of any qualified contribution made on or after January 1, 2000, and not later than June 30, 2008, on or after January 1, 2010, and not later than June 30, 2020, and on or after January 1, 2021, and not later than June 30, 2026, by the taxpayer during the taxable year to the state, any local government, or any designated nonprofit organization, pursuant to Division 28 (commencing with Section 37000) of the Public Resources Code. (b) For purposes of this section, “qualified contribution” means a contribution of property, as defined in Section 37002 of the Public Resources Code, that has been approved for acceptance by the Wildlife Conservation Board pursuant to Division 28 (commencing with Section 37000) of the Public Resources Code. (c) In the case of any pass-thru entity, the fair market value of any qualified contribution approved for acceptance under Division 28 (commencing with Section 37000) of the Public Resources Code shall be passed through to the partners or shareholders of the pass-thru entity in accordance with their interest in the pass-thru entity as of the date of the qualified contribution. For purposes of this subdivision, the term “pass-thru entity” means any partnership, “S” corporation, or limited liability company treated as a partnership. (d) (1) For a qualified contribution made on or after January 1, 2000, and before January 1, 2015, if the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and the succeeding seven years if necessary, until the credit is exhausted. (2) For a qualified contribution made on or after January 1, 2015, if the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and the succeeding 14 years if necessary, until the credit is exhausted. (e) This credit shall be in lieu of any other credit or deduction that the taxpayer may otherwise claim pursuant to this part with respect to the property or any interest therein that is contributed. (Amended by Stats. 2021, Ch. 419, Sec. 1. (AB 1219) Effective September 30, 2021.)
  184. 17053.40.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section gives a tax credit to qualified taxpayers for eligible transmission project expenditures, subject to limits and later carryover rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.40. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2036, there shall be allowed to qualified taxpayer, a credit against the “net tax,” as defined in Section 17039, in an amount equal to 20 percent of the qualified expenditures paid or incurred by the qualified taxpayer during the taxable year, not to exceed twenty million dollars ($20,000,000) per qualified taxpayer per taxable year. (b) For purposes of this section: (1) “Bank” means the California Infrastructure and Economic Development Bank established under Chapter 2 (commencing with Section 63021) of Division 1 of Title 6.7 of the Government Code. (2) “Eligible transmission project” has the same meaning as defined in Section 63049.73 of the Government Code. (3) “Qualified expenditures” means costs paid or incurred for planning, design, engineering, permitting, construction, and equipment directly related to the eligible transmission project or qualified wages paid or incurred to employees of a qualified taxpayer that perform services directly related to the eligible transmission project. (4) “Qualified taxpayer” means a taxpayer that is a participating party, as defined in subdivision (h) of section 63049.71 of the Government Code. (5) “Qualified wages” means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. (c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted. (d) If the credit allowed by this section is claimed by the qualified taxpayer, a deduction otherwise allowed under this part for any amount of qualified expenditures paid or incurred by the qualified taxpayer shall be reduced by the amount of the qualified expenditures taken into account in calculating the credit allowed by this section. (e) If the credit allowed by this section is claimed by the qualified taxpayer, the taxpayer shall not earn a return on equity for the eligible transmission project pursuant to Article 10.5 (commencing with Section 63049.71) of Chapter 2 of Division 1 of Title 6.7 of the Government Code for the portion of the project for which the credit is claimed. (f) The bank shall inform the Franchise Tax Board of any eligible transmission project that the bank approves for financial assistance pursuant to subdivision (i) of Section 63049.73 of the Government Code and shall provide any other information the Franchise Tax Board requires for administration of the credit allowed by this section. (g) The Franchise Tax Board may prescribe regulations that are necessary or appropriate to carry out the purposes of this section. (h) Section 41 shall not apply to this section. (i) This section shall remain in effect only until December 1, 2036, and as of that date is repealed. (Added by Stats. 2025, Ch. 119, Sec. 64. (SB 254) Effective September 19, 2025. Repealed as of December 1, 2036, by its own provisions.)
  185. 17053.42.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    A tax credit is allowed for eligible access expenditures, subject to a 50% rate up to $250.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.42. (a) For each taxable year beginning on or after January 1, 1996, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, the amount paid or incurred for eligible access expenditures. The credit shall be allowed in accordance with Section 44 of the Internal Revenue Code, relating to expenditures to provide access to disabled individuals, except that the credit amount specified in subdivision (b) shall be substituted for the credit amount specified in Section 44(a) of the Internal Revenue Code. (b) The credit amount allowed under this section shall be 50 percent of so much of the eligible access expenditures for the taxable year as do not exceed two hundred fifty dollars ($250). (c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding years if necessary, until the credit is exhausted. (Added by Stats. 1996, Ch. 954, Sec. 11. Effective September 26, 1996.)
  186. 17053.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section lets qualified renters claim a state income tax credit if they meet the income and residency/rental tests, with different credit amounts depending on filing status, income, dependents, and tax year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.5. (a) (1) For a qualified renter, there shall be allowed a credit against the renter’s “net tax,” as defined in Section 17039. The amount of the credit shall be as follows: (A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, if adjusted gross income is fifty thousand dollars ($50,000) or less, the credit shall be equal to: (i) For taxable years beginning before January 1, 2026, one hundred twenty dollars ($120). (ii) Except as otherwise provided in subdivision (k), for taxable years beginning on or after January 1, 2026: (I) Two hundred fifty dollars ($250) if the qualified renter has no dependents, as defined in Section 17056. (II) Five hundred dollars ($500) if the qualified renter has one or more dependents, as defined in Section 17056. (B) For other individuals, if adjusted gross income is twenty-five thousand dollars ($25,000) or less, the credit shall be equal to: (i) For taxable years beginning before January 1, 2026, sixty dollars ($60). (ii) Except as otherwise provided in subdivision (k), for taxable years beginning on or after January 1, 2026: (I) Two hundred fifty dollars ($250) if the qualified renter has no dependents, as defined in Section 17056. (II) Five hundred dollars ($500) if the qualified renter has one or more dependents, as defined in Section 17056. (2) Except as provided in subdivision (b), spouses shall receive only one credit under this section. If the spouses file separate returns, the credit may be taken by either or equally divided between them, except as follows: (A) If one spouse was a resident for the entire taxable year and the other spouse was a nonresident for part or all of the taxable year, the resident spouse shall be allowed one-half the credit allowed to married persons and the nonresident spouse shall be permitted one-half the credit allowed to married persons, prorated as provided in subdivision (e). (B) If both spouses were nonresidents for part of the taxable year, the credit allowed to married persons shall be divided equally between them subject to the proration provided in subdivision (e). (b) For spouses, if each spouse maintained a separate place of residence and resided in this state during the entire taxable year, each spouse will be allowed one-half the full credit allowed to married persons provided in subdivision (a). (c) For purposes of this section, a “qualified renter” means an individual who satisfies both of the following: (1) Was a resident of this state, as defined in Section 17014. (2) Rented and occupied premises in this state that constituted the individual’s principal place of residence during at least 50 percent of the taxable year. (d) “Qualified renter” does not include any of the following: (1) An individual who for more than 50 percent of the taxable year rented and occupied premises that were exempt from property taxes, except that an individual, otherwise qualified, is deemed a qualified renter if the individual or the individual’s landlord pays possessory interest taxes, or the owner of those premises makes payments in lieu of property taxes that are substantially equivalent to property taxes paid on properties of comparable market value. (2) An individual whose principal place of residence for more than 50 percent of the taxable year is with another person who claimed that individual as a dependent for income tax purposes. (3) An individual who has been granted or whose spouse has been granted the homeowners’ property tax exemption during the taxable year. This paragraph does not apply to an individual whose spouse has been granted the homeowners’ property tax exemption if each spouse maintained a separate residence for the entire taxable year. (e) An otherwise qualified renter who is a nonresident for any portion of the taxable year shall claim the credits set forth in subdivision (a) at the rate of one-twelfth of those credits for each full month that individual resided within this state during the taxable year. (f) A person claiming the credit provided in this section shall, as part of that claim, and under penalty of perjury, furnish that information as the Franchise Tax Board prescribes on a form supplied by the board. (g) The credit provided in this section shall be claimed on returns in the form as the Franchise Tax Board may from time to time prescribe. (h) For purposes of this section, “premises” means a house or a dwelling unit used to provide living accommodations in a building or structure and the land incidental thereto, but does not include land only, unless the dwelling unit is a mobilehome. The credit is not allowed for any taxable year for the rental of land upon which a mobilehome is located if the mobilehome has been granted a homeowners’ exemption under Section 218 in that year. (i) This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998. (j) For each taxable year beginning on or after January 1, 1999, the Franchise Tax Board shall recompute the adjusted gross income amounts set forth in subdivision (a). The computation shall be made as follows: (1) The Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current year, no later than August 1 of the current calendar year. (2) The Franchise Tax Board shall compute an inflation adjustment factor by adding 100 percent to the portion of the percentage change figure that is furnished pursuant to paragraph (1) and dividing the result by 100. (3) The Franchise Tax Board shall multiply the adjusted gross income amount in subparagraph (B) of paragraph (1) of subdivision (a) for the preceding taxable year by the inflation adjustment factor determined in paragraph (2), and round off the resulting products to the nearest one dollar ($1). (4) In computing the adjusted gross income amounts pursuant to this subdivision, the adjusted gross income amounts provided in subparagraph (A) of paragraph (1) of subdivision (a) shall be twice the amount provided in subparagraph (B) of paragraph (1) of subdivision (a). (k) (1) Unless otherwise specified annually in any bill providing for appropriations related to the Budget Act, for taxable years beginning on or after January 1, 2026, the amount of credit under clause (ii) of subparagraph (A) of, and clause (ii) of subparagraph (B) of, paragraph (1) of subdivision (a) shall be zero dollars ($0). (2) For any taxable year for which the amount of the credit under clause (ii) of subparagraph (A) of, or clause (ii) of subparagraph (B), as applicable, of, paragraph (1) of subdivision (a) is zero dollars ($0) pursuant to paragraph (1), the credit amounts set forth in clause (i) of subparagraph (A) of, or clause (i) of subparagraph (B), as applicable, of, paragraph (1) of subdivision (a) shall be the credit amounts for a qualified renter for the taxable year. (l) For the purposes of complying with Section 41, the Legislature finds and declares as follows: (1) The specific goals, purposes, and objectives of this bill are as follows: (A) To address the housing affordability crisis in California, as millions of Californians, who are disproportionately lower income and people of color, are making difficult decisions about paying for housing at the expense of other costs like food, health care, or childcare, as one in three households do not earn enough money to meet their basic needs. (B) To compensate low- and middle-income renters who are rent burdened by the increasing rates of rent throughout the State of California. (C) To restructure the credit to reflect the disproportionate burden of high rents on single-parent families. (D) To stimulate consumer spending and economic growth by providing more disposable income to reinvest in the economy. (2) To measure whether the credit achieves its intended purpose, for those taxable years for which the amount of credit under clause (ii) of subparagraph (A) of, or clause (ii) of subparagraph (B) of, paragraph (1) of subdivision (a) is not zero dollars ($0), the Franchise Tax Board shall prepare a written report on both of the following: (A) The number of taxpayers claiming the credit. (B) The average credit amount on tax returns claiming the credit. (3) The Franchise Tax Board shall provide the written report prepared pursuant to paragraph (2) to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Assembly and Senate Committees on Appropriations, the Senate Committee on Revenue and Taxation, and the Assembly Committee on Revenue and Taxation. The report shall be submitted in compliance with Section 9795 of the Government Code. The report shall be due July 1 two years following any taxable year that the credit under paragraph (1) of subdivision (k) is not equal to zero dollars ($0). (Amended by Stats. 2025, Ch. 22, Sec. 65. (AB 130) Effective June 30, 2025.)
  187. 17053.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    A tax credit is allowed equal to 10% of qualifying prisoner wages, and the Department of Corrections must annually send the Franchise Tax Board a list of certified participating employers with each participant’s federal employer identification number.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.6. (a) There shall be allowed as a credit against the “net tax” (as defined by Section 17039) an amount equal to 10 percent of the amount of wages paid or incurred during the taxable year to each prisoner who is employed in a joint venture program established pursuant to Article 1.5 of Chapter 5 of Title 1 of Part 3 of the Penal Code, through agreement with the Director of Corrections. (b) The Department of Corrections shall forward annually to the Franchise Tax Board a list of all employers certified by the Department of Corrections as active participants in a joint venture program pursuant to Article 1.5 (commencing with Section 2717.1) of Chapter 5 of Title 1 of Part 3 of the Penal Code. The list shall include the certified participant’s federal employer identification number. (Amended by Stats. 1991, Ch. 472, Sec. 6. Effective October 2, 1991. Note: This section was added on Nov. 6, 1990, by initiative Prop. 139 (the Prison Inmate Labor Initiative of 1990).)
  188. 17053.64.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section allows a credit for qualified taxpayers equal to 25% of qualified expenditures, subject to caps and reservation procedures.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.64. (a) (1) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer equal to 25 percent of the total amount of the qualified taxpayer’s qualified expenditures in the taxable year, subject to paragraph (2). (2) (A) The credit allowable under this section in any taxable year to any qualified taxpayer shall be limited to a maximum of two hundred fifty thousand dollars ($250,000). (B) For qualified taxpayers that are required to be included in a combined report under Section 25101 or authorized to be included in a combined report under Section 25101.15, the limit specified in subparagraph (A) shall be the aggregate amount of the credit claimed by all taxpayers that are required to be or authorized to be included in a combined report and in no instance shall the aggregate amount of credit claimed by a combined group exceed the limit specified in subparagraph (A). (b) For purposes of this section: (1) “Full-time employee” means an individual who is either of the following: (A) Paid wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code by the qualified taxpayer for services not less than an average of 35 hours per week. (B) A salaried employee who was paid compensation during the taxable year for full-time employment, as described in Section 515 of the Labor Code, by the qualified taxpayer that is paid wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. (2) “Minimum wage” means the wage established pursuant to Chapter 1 (commencing with Section 1171) of Part 4 of Division 2 of the Labor Code. (3) “Qualified expenditures” means amounts paid or incurred by a qualified taxpayer for any of the following: (A) Employment compensation for the full-time employees of the qualified taxpayer. For purposes of this subparagraph, “employment compensation” means wages paid to full-time employees who are paid no less than 150 percent but no more than 350 percent of the applicable minimum wage. The calculation of wages pursuant to this subparagraph may include the monetary value to the full-time employee of employer-provided group health insurance benefits, childcare benefits, employer contributions to employer-provided retirement benefits, or employer contributions to pension benefits. (B) Safety-related equipment, training, and services. For purposes of this subparagraph, “safety-related equipment, training, and services” means equipment primarily used by employees of cannabis licensees to ensure their personal and occupational safety or the safety of customers of the cannabis licensees; training for nonmanagement employees on workplace hazards, including, but not limited to, training required pursuant to subparagraph (A) of paragraph (11) of subdivision (a) of Section 26051.5 of the Business and Professions Code; and services, including, but not limited to, safety audits, security guards, security cameras, and fire risk mitigation. (C) Workforce development and safety training for employees of the qualified taxpayer. For purposes of this subparagraph, “workforce development” includes, but is not limited to, joint labor management training programs, membership in a joint apprenticeship training committee registered by the Division of Apprenticeship Standards, and a state-recognized high road training partnership as defined in Section 14005 of the Unemployment Insurance Code. (4) “Qualified taxpayer” means a commercial cannabis business, licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code, and that provides full-time employees with all of the following: (A) Employment compensation, as described in subparagraph (A) of paragraph (3). (B) Employer-provided group health insurance. (C) Employer-provided retirement benefits or pension benefits, including stock in the duly licensed commercial cannabis employer to employees under employee stock ownership plans where the employer pays for the full value of the stock. (D) Possesses a Type-10 or a Type-12 license pursuant to Section 26050 of the Business and Professions Code. (c) The total aggregate amount of the credit that may be allocated by credit reservations to all qualified taxpayers pursuant to this section and Section 23664 shall not exceed twenty million dollars ($20,000,000) for all taxable years, cumulatively. (d) To be eligible for the credit allowed by this section, a qualified taxpayer shall request a credit reservation from the Franchise Tax Board during the month of July for each taxable year or within 30 days of the start of their taxable year if the qualified taxpayer’s taxable year begins after July, in the form and manner prescribed by the Franchise Tax Board. (e) To obtain a credit reservation with respect to a qualified expenditure, the qualified taxpayer shall provide all necessary information, as determined by the Franchise Tax Board. (f) The Franchise Tax Board shall approve tentative credit reservations with respect to qualified expenditures incurred during a taxable year for qualified taxpayers, subject to the cap established under this section and Section 23664. (g) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and the seven succeeding years if necessary, until the credit is exhausted. (h) If the credit allowed by this section is claimed by the qualified taxpayer, any deduction or credit otherwise allowed under this part for any qualified expenditure made by the qualified taxpayer as a trade or business expense shall be reduced by the amount of the credit allowed by this section. (i) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (j) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. (Added by Stats. 2022, Ch. 56, Sec. 14. (AB 195) Effective June 30, 2022. Repealed as of December 1, 2028, by its own provisions.)
  189. 17053.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section gives a 10% tax credit for qualifying wages, but only if the employee is certified and the employer meets timing rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.7. (a) There shall be allowed as a credit against the “net tax” (as defined by Section 17039) an amount equal to 10 percent of the amount of wages paid to each employee who is certified by the Employment Development Department to meet the requirements of Section 328 of the Unemployment Insurance Code. The credit under this section shall not apply to an individual unless, on or before the day on which that individual begins work for the employer, the employer: (1) Has received a certification from the Employment Development Department, or (2) Has requested in writing that certification from the Employment Development Department. For the purposes of this subdivision, if on or before the day on which the individual begins work for the employer, the individual has received from the Employment Development Department a written preliminary determination that he or she is a member of a targeted group, then the requirement of paragraph (1) or (2) shall be applicable on or before the fifth day on which the individual begins work for the employer. (b) The credit under this section shall not apply to wages paid in excess of three thousand dollars ($3,000) during a taxable year by a taxpayer to the same individual. With respect to each qualified employee, the aggregate credit under this section shall not exceed six hundred dollars ($600). (c) The credit under this section shall not apply to wages paid to an individual: (1) Who bears any of the relationships described in paragraphs (1) to (8), inclusive, of Section 152(a) of the Internal Revenue Code to the taxpayer; or (2) Who, if the taxpayer is an estate or trust, is a grantor, beneficiary, or fiduciary of the estate or trust, or is an individual who bears any of the relationships described in paragraphs (1) to (8), inclusive, of Section 152(a) of the Internal Revenue Code to a grantor, beneficiary, or fiduciary of the estate or trust; or (3) Who is a dependent (as described in Section 152(a)(9) of the Internal Revenue Code) of the taxpayer, or, if the taxpayer is an estate or trust, of a grantor, beneficiary, or a fiduciary of the estate or trust. (d) The credit under this section shall not apply to wages paid to an individual if, prior to the hiring date of that individual, that individual has been employed by the employer at any time during which he or she was not certified by the Employment Development Department to meet the requirements of Section 328 of the Unemployment Insurance Code. (e) If the certification of an employment has been revoked pursuant to subdivision (c) of Section 328 of the Unemployment Insurance Code, the credit under this section shall not apply to wages paid by the employer after the date on which notice of revocation is received by the employer. (f) The credit under this section shall be in addition to any deduction under this part to which the taxpayer may be entitled, if any. (g) The credit provided by this section shall be applied to wages paid to each qualifying employee during the 24-month period beginning on the date the employee begins working for the taxpayer. (h) (1) A taxpayer may elect to have this section not apply for any taxable year. (2) An election under paragraph (1) for any taxable year may be made (or revoked) at any time before the expiration of the four-year period beginning on the last date prescribed by law for filing the return for that taxable year (determined without regard to extensions). (3) An election under paragraph (1) (or revocation thereof) shall be made in any manner which the Franchise Tax Board may prescribe. (i) (1) In the case of a successor employer referred to in Section 3306(b)(1) of the Internal Revenue Code, the determination of the amount of the credit under this section with respect to wages paid by that successor employer shall be made in the same manner as if those wages were paid by the predecessor employer referred to in that section. (2) No credit shall be determined under this section with respect to remuneration paid by an employer to an employee for services performed by that employee for another person, unless the amount reasonably expected to be received by the employer for those services from that other person exceeds the remuneration paid by the employer to that employee for those services. (j) The term “wages” shall not include either of the following: (1) Payments defined in Section 51(c)(3) of the Internal Revenue Code, relating to payments for services during labor disputes. (2) Any amounts paid or incurred to an individual who begins work for the employer after December 31, 1993. (Amended by Stats. 1989, Ch. 1352, Sec. 13.5. Effective October 2, 1989. Applicable to taxable years beginning on or after January 1, 1989, by Sec. 172 of Ch. 1352.)
  190. 17053.71.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section allows a small business hiring credit for a qualified small business employer that gets a tentative credit reservation, and it sets the credit formula, carryover rules, and related administrative powers.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.71. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2022, there shall be allowed a small business hiring credit against the “net tax,” as defined in Section 17039, to a qualified small business employer that receives a tentative credit reservation under Section 6902.10, in an amount calculated pursuant to paragraph (2). (2) The amount of the credit allowed by this subdivision shall be equal to the amount calculated pursuant to subparagraph (A) minus the amount calculated pursuant to subparagraph (B). (A) One thousand dollars ($1,000) for each net increase in qualified employees, as specified in subdivision (c), not to exceed one hundred fifty thousand dollars ($150,000). (B) If the qualified small business employer received a tentative credit reservation amount pursuant to Section 6902.8, either of the following applies: (i) For a qualified small business employer that made an irrevocable election pursuant to Section 6902.8 to apply the credit against qualified sales and use taxes pursuant to Section 6902.7, the credit amounts allocated to the qualified small business employer pursuant to Sections 6902.7 and 6902.8. (ii) For a qualified small business employer that elected to apply the credit under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001), or both, the tentative credit reservation amount received by the qualified small business employer pursuant to Section 6902.8. (b) For purposes of this section: (1) “Monthly full-time equivalent” means either of the following: (A) For a qualified employee paid hourly qualified wages, “monthly full-time equivalent” means the total number of hours employed per month for the qualified small business employer by the qualified employee, not to exceed 167 hours per month per qualified employee, divided by 167. (B) In the case of a salaried qualified employee, “monthly full-time equivalent” means the total number of weeks employed per month for the qualified small business employer by the qualified employee divided by 4.33 multiplied by the time base the qualified employee was employed. (2) (A) “Qualified employee” means an employee who is paid qualified wages by a qualified small business employer. (B) “Qualified employee” shall not include an employee whose qualified wages are included in calculating any other credit allowed under this part, except for the credit allowed under Section 17053.72. (3) (A) “Qualified small business employer” means a taxpayer that as of December 31, 2020, employed a total of 500 or fewer qualified employees and meets one of the following requirements: (i) Has a decrease of 20 percent or more in gross receipts determined by comparing gross receipts for the period beginning on January 1, 2020, and ending on December 31, 2020, to the gross receipts for the period beginning on January 1, 2019, and ending on December 31, 2019. (ii) Is a fiscal year filer that has a decrease of 20 percent or more in gross receipts determined by comparing either of the following: (I) The gross receipts for fiscal year 2019–20 to the gross receipts from fiscal year 2018–19. (II) The average of gross receipts for fiscal year 2019–20 and fiscal year 2020–21 to the gross receipts from fiscal year 2018–19. (iii) For a taxpayer that first commences business after January 1, 2019, but on or before January 1, 2020, has a decrease of 20 percent or more in gross receipts in the second quarter of 2020 determined by comparing gross receipts from January 1, 2020, through February 28, 2020, multiplied by 1.5 to the gross receipts for the period beginning on April 1, 2020, and ending on June 30, 2020. (B) “Qualified small business employer” does not include a taxpayer required to be included in a combined report under Section 25101 or 25110 or authorized to be included in a combined report under Section 25101.15. (4) “Qualified wages” means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. (5) “Time base” means the fraction of full-time employment that the qualified employee is employed. (6) “Weeks employed” means the total number of calendar days that a qualified employee was employed by the qualified small business employer during the month, divided by seven, not to exceed 4.33. (c) The net increase in qualified employees of a qualified small business employer shall be equal to the amount calculated pursuant to paragraph (2) minus the amount calculated pursuant to paragraph (1). (1) The average monthly full-time equivalent qualified employees employed during the three-month period beginning on April 1, 2020, and ending on June 30, 2020, by the qualified small business employer. The average monthly full-time equivalent qualified employees is determined by adding the total monthly full-time equivalent qualified employees employed by the qualified small business employer for all three months and dividing the total by three. (2) The lesser of either of the following: (A) The average monthly full-time equivalent qualified employees employed during the 12-month period beginning on July 1, 2020, and ending on June 30, 2021, by the qualified small business employer. The average monthly full-time equivalent qualified employees is determined by adding the total monthly full-time equivalent qualified employees employed by the qualified small business employer for all 12 months and dividing the total by 12. (B) The average monthly full-time equivalent qualified employees employed during the three-month period beginning on April 1, 2021, and ending on June 30, 2021, by the qualified small business employer. The average monthly full-time equivalent qualified employees is determined by adding the total monthly full-time equivalent qualified employees employed by the qualified small business employer for all three months and dividing the total by three. (d) If the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding four years if necessary, until the credit is exhausted. (e) A deduction otherwise allowed under this part for qualified wages shall be reduced by the amount of the credit allowed under this section. (f) For purposes of this section all of the following shall apply: (1) All employees of the trades or businesses that are treated as related under Section 267, 318, or 707 of the Internal Revenue Code shall be treated as employed by a single qualified small business employer. (2) If a qualified small business employer changes its business form to a different entity type after receiving a tentative credit reservation under Section 6902.10 and continues operation, the new entity shall be allowed the credit, and the determination of the amount of the credit under this section with respect to qualified wages paid or incurred by the qualified small business employer shall apply to the new entity as if those qualified wages were paid or incurred by the new entity. (g) Notwithstanding Section 23803, an “S” corporation that makes the election under Section 6902.10 shall be allowed to apply the full credit amount against qualified sales and use tax, and no amount of credit shall be allowed to reduce the shareholder’s liability under this part. (h) A disallowance of a credit claimed due to the application of the limitation specified in Section 6902.10 shall be treated as a mathematical error appearing on the return. An amount of tax resulting from that disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. (i) (1) The Franchise Tax Board may adopt regulations necessary or appropriate to carry out the purposes of this section. (2) The Franchise Tax Board may adopt rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, procedure, or other guidance adopted by the Franchise Tax Board pursuant to this section. (j) Notwithstanding Section 19542, the Franchise Tax Board may provide to the California Department of Tax and Fee Administration, only to the extent allowed under federal law, information related to the credit allowed by Section 6902.9, this section, and Section 23628, including, but not limited to, the qualified small business employer names, amounts of tax credits allowed under each section, amount of gross receipts, and the net increase in qualified employees. (k) The amendments made to this section by Chapter 55 of the Statutes of 2022 shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2022. (l) This section shall remain in effect only until December 1, 2026, and as of that date is repealed. (Amended by Stats. 2022, Ch. 737, Sec. 2. (AB 158) Effective September 29, 2022. Repealed as of December 1, 2026, by its own provisions.)
  191. 17053.73.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section gives a California income tax credit to qualifying taxpayers that hire qualified full-time employees and meet reservation, reporting, and wage rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.73. (a) (1) For each taxable year beginning on or after January 1, 2014, and before January 1, 2026, there shall be allowed to a qualified taxpayer that hires a qualified full-time employee and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area, and that receives a tentative credit reservation for that qualified full-time employee, a credit against the “net tax,” as defined in Section 17039, in an amount calculated under this section. (2) For each taxable year beginning on or after January 1, 2023, and before January 1, 2026, the designated census tract or economic development area requirements shall not apply to a qualified taxpayer described in clause (ii), (iii), (iv), or (v) of subparagraph (A) of paragraph (14) of subdivision (b). (3) The amount of the credit allowable under this section for a taxable year shall be equal to the product of the tentative credit amount for the taxable year and the applicable percentage for that taxable year. (4) (A) If a qualified taxpayer relocates to a designated census tract or economic development area, the qualified taxpayer shall be allowed a credit with respect to qualified wages for each qualified full-time employee employed within the new location only if the qualified taxpayer provides each employee at the previous location or locations a written offer of employment at the new location in the designated census tract or economic development area with comparable compensation. (B) For purposes of this paragraph, “relocates to a designated census tract or economic development area” means an increase in the number of qualified full-time employees, employed by a qualified taxpayer, within a designated census tract or tracts or economic development areas within a 12-month period in which there is a decrease in the number of full-time employees, employed by the qualified taxpayer in this state, but outside of designated census tracts or economic development areas. (C) This paragraph does not apply to a small business. (5) The credit allowed by this section may be claimed only on a timely filed original return of the qualified taxpayer and only with respect to a qualified full-time employee for whom the qualified taxpayer has received a tentative credit reservation. (b) For purposes of this section: (1) The “tentative credit amount” for a taxable year shall be equal to the product of the applicable credit percentage for each qualified full-time employee and the qualified wages paid by the qualified taxpayer during the taxable year to that qualified full-time employee. (2) The “applicable percentage” for a taxable year shall be equal to a fraction, the numerator of which is the net increase in the total number of full-time employees employed in this state during the taxable year, determined on an annual full-time equivalent basis, as compared with the total number of full-time employees employed in this state during the base year, determined on the same basis, and the denominator of which shall be the total number of qualified full-time employees employed in this state during the taxable year. The applicable percentage shall not exceed 100 percent. (3) The “applicable credit percentage” means the credit percentage for the calendar year during which a qualified full-time employee was first employed by the qualified taxpayer. The applicable credit percentage for all calendar years shall be 35 percent. (4) “Base year” means the 2013 taxable year, except in the case of a qualified taxpayer who first hires a qualified full-time employee in a taxable year beginning on or after January 1, 2015, the base year means the taxable year immediately preceding the taxable year in which a qualified full-time employee was first hired by the qualified taxpayer. (5) “Acquired” includes any gift, inheritance, transfer incident to divorce, or any other transfer, whether or not for consideration. (6) “Annual full-time equivalent” means either of the following: (A) In the case of a full-time employee paid hourly qualified wages, “annual full-time equivalent” means the total number of hours worked for the qualified taxpayer by the employee, not to exceed 2,000 hours per employee, divided by 2,000. (B) In the case of a salaried full-time employee, “annual full-time equivalent” means the total number of weeks worked for the qualified taxpayer by the employee divided by 52. (7) “Designated census tract” means a census tract within the state that is determined by the Department of Finance to have a civilian unemployment rate that is within the top 25 percent of all census tracts within the state and has a poverty rate within the top 25 percent of all census tracts within the state, as prescribed in Section 13073.5 of the Government Code. (8) “Economic development area” means either of the following: (A) A former enterprise zone. For purposes of this section, “former enterprise zone” means an enterprise zone designated and in effect as of December 31, 2011, any enterprise zone designated during 2012, and any revision of an enterprise zone prior to June 30, 2013, under former Chapter 12.8 (commencing with Section 7070) of Division 7 of Title 1 of the Government Code, as in effect on December 31, 2012, excluding any census tract within an enterprise zone that is identified by the Department of Finance pursuant to Section 13073.5 of the Government Code as a census tract within the lowest quartile of census tracts with the lowest civilian unemployment and poverty. (B) A local agency military base recovery area designated as of the effective date of the act adding this subparagraph, in accordance with Section 7114 of the Government Code. (9) “Electric airplane manufacturing” means manufacturing of electric airplanes that would be classified under Code 3364 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2022 edition. (10) “Lithium production” means lithium mining and manufacturing described in Codes 212390 or 325180 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2022 edition. (11) “Manufacturing of lithium batteries” means the manufacturing described in Code 335910 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2022 edition. (12) “Minimum wage” means the wage established pursuant to Chapter 1 (commencing with Section 1171) of Part 4 of Division 2 of the Labor Code. (13) (A) “Qualified full-time employee” means an individual who meets all of the following requirements: (i) (I) Performs at least 50 percent of their services for the qualified taxpayer during the taxable year in a designated census tract or economic development area. (II) This clause does not apply to employees of a qualified taxpayer described in clause (ii), (iii), (iv), or (v) of subparagraph (A) of paragraph (14). (ii) Receives starting wages that are at least 150 percent of the minimum wage or at least 100 percent of the minimum wage for employees of a qualified taxpayer described in clause (ii), (iii), (iv), or (v) of subparagraph (A) of paragraph (14). (iii) Is hired by the qualified taxpayer on or after January 1, 2014. (iv) Is hired by the qualified taxpayer after the date the Department of Finance determines that the census tract referred to in clause (i) is a designated census tract or that the census tracts within a former enterprise zone are not census tracts with the lowest civilian unemployment and poverty. (v) Satisfies either of the following conditions: (I) Is paid qualified wages by the qualified taxpayer for services not less than an average of 35 hours per week. (II) Is a salaried employee and was paid compensation during the taxable year for full-time employment, within the meaning of Section 515 of the Labor Code, by the qualified taxpayer. (vi) Upon commencement of employment with the qualified taxpayer, satisfies any of the following conditions: (I) Was unemployed for the six months immediately preceding employment with the qualified taxpayer. In the case of an individual that completed a program of study at a college, university, or other postsecondary educational institution, received a baccalaureate, postgraduate, or professional degree, and was unemployed for the six months immediately preceding employment with the qualified taxpayer, that individual must have completed that program of study at least 12 months prior to the individual’s commencement of employment with the qualified taxpayer. (II) Is a veteran who separated from service in the Armed Forces of the United States within the 12 months preceding commencement of employment with the qualified taxpayer. (III) Was a recipient of the credit allowed under Section 32 of the Internal Revenue Code, relating to earned income, as applicable for federal purposes, for the previous taxable year. (IV) Is an ex-offender previously convicted of a felony. (V) Is a recipient of either CalWORKs, in accordance with Article 2 (commencing with Section 11250) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, or general assistance, in accordance with Section 17000.5 of the Welfare and Institutions Code. (B) An individual may be considered a qualified full-time employee only for the period of time commencing with the date the individual is first employed by the qualified taxpayer and ending 60 months thereafter. (14) (A) “Qualified taxpayer” means any of the following: (i) A person or entity engaged in a trade or business within a designated census tract or economic development area that, during the taxable year, pays or incurs qualified wages. (ii) A person or entity engaged in semiconductor manufacturing or semiconductor research and development that, upon requesting a tentative credit reservation, self-certifies and provides verification, in the form and manner prescribed by the Franchise Tax Board, that they intend to apply or have applied for federal funding pursuant to Sections 101 to 106, inclusive, of, or intend to claim or have claimed the credit pursuant to Section 107 of, Division A of the federal Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act of 2022 (Public Law 117-167), and that pays or incurs qualified wages during the taxable year. (iii) A person or entity engaged in electric airplane manufacturing that, upon requesting a tentative credit reservation, self-certifies and provides verification, in the form and manner prescribed by the Franchise Tax Board, that they have received a sales and use tax exclusion pursuant to Section 6010.8 for an electric vertical takeoff and landing (eVTOL) manufacturer and that pays or incurs qualified wages during the taxable year. (iv) A person or entity engaged in lithium production that, upon requesting a tentative credit reservation, self-certifies and provides verification, in the form and manner prescribed by the Franchise Tax Board, that they are a producer, as defined by Section 47002, who pays the tax imposed by Part 25 (commencing with Section 47000) for the taxable year and that pays or incurs qualified wages during the taxable year. (v) (I) A person or entity engaged in manufacturing of lithium batteries that, upon requesting a tentative credit reservation, self-certifies and provides verification, in the form and manner prescribed by the Franchise Tax Board, that their primary business is lithium battery manufacturing and that pays or incurs qualified wages during the taxable year. (II) For purposes of this clause, “primary business” means 50 percent or more of their gross income is derived from lithium battery manufacturing. (B) In the case of any pass-thru entity, the determination of whether a taxpayer is a qualified taxpayer under this section shall be made at the entity level and any credit under this section or Section 23626 shall be allowed to the pass-thru entity and passed through to the partners and shareholders in accordance with applicable provisions of this part or Part 11 (commencing with Section 23001). For purposes of this subdivision, the term “pass-thru entity” means any partnership or “S” corporation. (C) “Qualified taxpayers” shall not include any of the following: (i) Employers that provide temporary help services, as described in Code 561320 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition. (ii) Employers that provide retail trade services, as described in Sector 44-45 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition. (iii) Employers that are primarily engaged in providing food services, as described in Code 711110, 722511, 722513, 722514, or 722515 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition. (iv) Employers that are primarily engaged in services as described in Code 713210, 721120, or 722410 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2012 edition. (v) (I) An employer that is a sexually oriented business. (II) For purposes of this clause: (ia) “Sexually oriented business” means a nightclub, bar, restaurant, or similar commercial enterprise that provides for an audience of two or more individuals live nude entertainment or live nude performances where the nudity is a function of everyday business operations and where nudity is a planned and intentional part of the entertainment or performance. (ib) “Nude” means clothed in a manner that leaves uncovered or visible, through less than fully opaque clothing, any portion of the genitals or, in the case of a female, any portion of the breasts below the top of the areola of the breasts. (D) Subparagraph (C) shall not apply to a taxpayer that is a “small business.” (15) “Qualified wages” means those wages subject to withholding pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code that meet all of the following requirements: (A) (i) Except as provided in clause (ii) or (iii), that portion of wages paid or incurred by the qualified taxpayer during the taxable year to each qualified full-time employee that exceeds 150 percent of minimum wage, but does not exceed 350 percent of minimum wage. (ii) (I) In the case of a qualified full-time employee employed in a designated pilot area, that portion of wages paid or incurred by the qualified taxpayer during the taxable year to each qualified full-time employee that exceeds ten dollars ($10) per hour or an equivalent amount for salaried employees, but does not exceed 350 percent of minimum wage. For qualified full-time employees described in the preceding sentence, clause (ii) of subparagraph (A) of paragraph (13) is modified by substituting “ten dollars ($10) per hour or an equivalent amount for salaried employees” for “150 percent of the minimum wage.” (II) For purposes of this clause: (ia) “Designated pilot area” means an area designated as a designated pilot area by the Governor’s Office of Business and Economic Development. (ib) Areas that may be designated as a designated pilot area are limited to areas within a designated census tract or an economic development area with average wages less than the statewide average wages, based on information from the Labor Market Division of the Employment Development Department, and areas within a designated census tract or an economic development area based on high poverty or high unemployment. (ic) The total number of designated pilot areas that may be designated is limited to five, one or more of which must be an area within five or fewer designated census tracts within a single county based on high poverty or high unemployment or an area within an economic development area based on high poverty or high unemployment. (id) The designation of a designated pilot area shall be applicable for a period of four calendar years, commencing with the first calendar year for which the designation of a designated pilot area is effective. The applicable period of a designated pilot area may be extended, in the sole discretion of the Governor’s Office of Business and Economic Development, for an additional period of up to three calendar years. The applicable period, and any extended period, shall not extend beyond December 31, 2020. (III) The designation of an area as a designated pilot area and the extension of the applicable period of a designated pilot area shall be at the sole discretion of the Governor’s Office of Business and Economic Development and shall not be subject to administrative appeal or judicial review. (iii) For qualified full-time employees of a qualified taxpayer described in clause (ii), (iii), (iv), or (v) of subparagraph (A) of paragraph (14), that portion of wages paid or incurred by the qualified taxpayer during the taxable year to each qualified full-time employee that exceeds 100 percent of the minimum wage, but does not exceed 350 percent of the minimum wage. (B) Wages paid or incurred during the 60-month period beginning with the first day the qualified full-time employee commences employment with the qualified taxpayer. In the case of any employee who is reemployed, including a regularly occurring seasonal increase, in the trade or business operations of the qualified taxpayer, this reemployment shall not be treated as constituting commencement of employment for purposes of this section. (C) Except as provided in paragraph (3) of subdivision (n), qualified wages shall not include any wages paid or incurred by the qualified taxpayer on or after the date that the Department of Finance’s redesignation of designated census tracts is effective, as provided in paragraph (2) of subdivision (g), so that a census tract is no longer a designated census tract. (16) “Seasonal employment” means employment by a qualified taxpayer that has regular and predictable substantial reductions in trade or business operations. (17) “Semiconductor manufacturing or semiconductor research and development” means manufacturing described in Code 3344 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2022 edition. (18) (A) “Small business” means a trade or business that has aggregate gross receipts, less returns and allowances reportable to this state, of less than two million dollars ($2,000,000) during the previous taxable year. (B) (i) For purposes of this paragraph, “gross receipts, less returns and allowances reportable to this state,” means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120. (ii) In the case of any trade or business activity conducted by a partnership or an “S” corporation, the limitations set forth in subparagraph (A) shall be applied to the partnership or “S” corporation and to each partner or shareholder. (C) (i) “Small business” shall not include a sexually oriented business. (ii) For purposes of this subparagraph: (I) “Sexually oriented business” means a nightclub, bar, restaurant, or similar commercial enterprise that provides for an audience of two or more individuals live nude entertainment or live nude performances where the nudity is a function of everyday business operations and where nudity is a planned and intentional part of the entertainment or performance. (II) “Nude” means clothed in a manner that leaves uncovered or visible, through less than fully opaque clothing, any portion of the genitals or, in the case of a female, any portion of the breasts below the top of the areola of the breasts. (19) An individual is “unemployed” for any period for which the individual is all of the following: (A) Not in receipt of wages subject to withholding under Section 13020 of the Unemployment Insurance Code for that period. (B) Not a self-employed individual (within the meaning of Section 401(c)(1)(B) of the Internal Revenue Code, relating to self-employed individual) for that period. (C) Not a registered full-time student at a high school, college, university, or other postsecondary educational institution for that period. (c) The net increase in full-time employees of a qualified taxpayer shall be determined as provided by this subdivision: (1) (A) The net increase in full-time employees shall be determined on an annual full-time equivalent basis by subtracting from the amount determined in subparagraph (C) the amount determined in subparagraph (B). (B) The total number of full-time employees employed in the base year by the taxpayer and by any trade or business acquired by the taxpayer during the current taxable year. (C) The total number of full-time employees employed in the current taxable year by the taxpayer and by any trade or business acquired during the current taxable year. (2) For taxpayers who first commence doing business in this state during the taxable year, the number of full-time employees for the base year shall be zero. (d) For purposes of this section: (1) All employees of the trades or businesses that are treated as related under Section 267, 318, or 707 of the Internal Revenue Code shall be treated as employed by a single taxpayer. (2) In determining whether the taxpayer has first commenced doing business in this state during the taxable year, the provisions of subdivision (f) of Section 17276, without application of paragraph (7) of that subdivision, shall apply. (e) (1) (A) Except as provided in subparagraph (B), to be eligible for the credit allowed by this section, a qualified taxpayer shall, upon hiring a qualified full-time employee, request a tentative credit reservation from the Franchise Tax Board within 30 days of complying with the Employment Development Department’s new hire reporting requirements as provided in Section 1088.5 of the Unemployment Insurance Code, in the form and manner prescribed by the Franchise Tax Board. (B) For taxable years beginning on or after January 1, 2023, and before January 1, 2024, to be eligible for the credit allowed by this section, a qualified taxpayer described in clause (ii), (iii), (iv), or (v) of subparagraph (A) of paragraph (14) of subdivision (b) shall, upon hiring a qualified full-time employee, request a tentative credit reservation from the Franchise Tax Board on or before the last day of the month following the close of the taxable year for which the credit is claimed, in the form and manner prescribed by the Franchise Tax Board. (2) To obtain a tentative credit reservation with respect to a qualified full-time employee, the qualified taxpayer shall provide necessary information, as determined by the Franchise Tax Board, including the name, social security number, the start date of employment, the rate of pay of the qualified full-time employee, the qualified taxpayer’s gross receipts, less returns and allowances, for the previous taxable year, and whether the qualified full-time employee is a resident of a targeted employment area, as defined in former Section 7072 of the Government Code, as in effect on December 31, 2013. (3) The qualified taxpayer shall provide the Franchise Tax Board an annual certification of employment with respect to each qualified full-time employee hired in a previous taxable year, on or before, the 15th day of the third month of the taxable year. The certification shall include necessary information, as determined by the Franchise Tax Board, including the name, social security number, start date of employment, and rate of pay for each qualified full-time employee employed by the qualified taxpayer. (4) (A) A qualified taxpayer, as defined under clause (ii), (iii), (iv), or (v) of subparagraph (A) of paragraph (14) of subdivision (b), shall, upon request, provide to the Franchise Tax Board the applicable verification specified in subparagraph (A) of paragraph (14) of subdivision (b). (B) The verification shall be provided in the form and manner prescribed by the Franchise Tax Board. (C) Any disallowance of a credit claimed due to a failure to provide verification under this paragraph shall be treated as a mathematical error appearing on the return. Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. (5) A tentative credit reservation provided to a taxpayer with respect to an employee of that taxpayer shall not constitute a determination by the Franchise Tax Board with respect to any of the requirements of this section regarding a taxpayer’s eligibility for the credit authorized by this section. (f) The Franchise Tax Board shall do all of the following: (1) Approve a tentative credit reservation with respect to a qualified full-time employee hired during a calendar year. (2) Determine the aggregate tentative reservation amount and the aggregate small business tentative reservation amount for a calendar year. (3) A tentative credit reservation request from a qualified taxpayer with respect to a qualified full-time employee who is a resident of a targeted employment area, as defined in former Section 7072 of the Government Code, as in effect on December 31, 2013, shall be expeditiously processed by the Franchise Tax Board. The residence of a qualified full-time employee in a targeted employment area shall have no other effect on the eligibility of an individual as a qualified full-time employee or the eligibility of a qualified taxpayer for the credit authorized by this section. (4) Notwithstanding Section 19542, provide as a searchable database on its internet website, for each taxable year beginning on or after January 1, 2014, and before January 1, 2026, the employer names, amounts of tax credit claimed, and number of new jobs created for each taxable year pursuant to this section and Section 23626. (g) (1) The Department of Finance shall, by January 1, 2014, and by January 1 of every fifth year thereafter, provide the Franchise Tax Board with a list of the designated census tracts and a list of census tracts with the lowest civilian unemployment rate. (2) The redesignation of designated census tracts and lowest civilian unemployment census tracts by the Department of Finance as provided in Section 13073.5 of the Government Code shall be effective, for purposes of this credit, one year after the date the Department of Finance redesignates the designated census tracts. (h) For purposes of this section: (1) All employees of the trades or businesses that are treated as related under Section 267, 318, or 707 of the Internal Revenue Code shall be treated as employed by a single taxpayer. (2) All employees of trades or businesses that are not incorporated, and that are under common control, shall be treated as employed by a single taxpayer. (3) The credit, if any, allowable by this section with respect to each trade or business shall be determined by reference to its proportionate share of the expense of the qualified wages giving rise to the credit, and shall be allocated to that trade or business in that manner. (4) Principles that apply in the case of controlled groups of corporations, as specified in subdivision (h) of Section 23626, shall apply with respect to determining employment. (5) If an employer acquires the major portion of a trade or business of another employer, hereinafter in this paragraph referred to as the predecessor, or the major portion of a separate unit of a trade or business of a predecessor, then, for purposes of applying this section, other than subdivision (i), for any taxable year ending after that acquisition, the employment relationship between a qualified full-time employee and an employer shall not be treated as terminated if the employee continues to be employed in that trade or business. (i) (1) If the employment of any qualified full-time employee, with respect to whom qualified wages are taken into account under subdivision (a), is terminated by the qualified taxpayer at any time during the first 36 months after commencing employment with the qualified taxpayer, whether or not consecutive, the tax imposed by this part for the taxable year in which that employment is terminated shall be increased by an amount equal to the credit allowed under subdivision (a) for that taxable year and all prior taxable years attributable to qualified wages paid or incurred with respect to that employee. (2) Paragraph (1) does not apply to any of the following: (A) A termination of employment of a qualified full-time employee who voluntarily leaves the employment of the qualified taxpayer. (B) A termination of employment of a qualified full-time employee who, before the close of the period referred to in paragraph (1), becomes disabled and unable to perform the services of that employment, unless that disability is removed before the close of that period and the qualified taxpayer fails to offer reemployment to that employee. (C) A termination of employment of a qualified full-time employee, if it is determined that the termination was due to the misconduct, as defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California Code of Regulations, of that employee. (D) A termination of employment of a qualified full-time employee due to a substantial reduction in the trade or business operations of the qualified taxpayer, including reductions due to seasonal employment. (E) A termination of employment of a qualified full-time employee, if that employee is replaced by other qualified full-time employees so as to create a net increase in both the number of employees and the hours of employment. (F) A termination of employment of a qualified full-time employee, when that employment is considered seasonal employment and the qualified employee is rehired on a seasonal basis. (3) For purposes of paragraph (1), the employment relationship between the qualified taxpayer and a qualified full-time employee shall not be treated as terminated by reason of a mere change in the form of conducting the trade or business of the qualified taxpayer, if the qualified full-time employee continues to be employed in that trade or business and the qualified taxpayer retains a substantial interest in that trade or business. (4) An increase in tax under paragraph (1) shall not be treated as tax imposed by this part for purposes of determining the amount of any credit allowable under this part. (j) In the case of an estate or trust, both of the following apply: (1) The qualified wages for a taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each. (2) A beneficiary to whom any qualified wages have been apportioned under paragraph (1) shall be treated, for purposes of this part, as the employer with respect to those wages. (k) In the case in which the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and the succeeding four years if necessary, until the credit is exhausted. (l) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (m) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each fiscal year from the 2013–14 fiscal year to the 2020–21 fiscal year, inclusive. (2) (A) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report of the total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the department’s estimate with respect to that same fiscal year. If the total dollar amount of credits claimed for the fiscal year is less than the estimate for that fiscal year, the report shall identify options for increasing annual claims of the credit so as to meet estimated amounts. (B) Beginning March 1, 2025, the report required by this paragraph shall include information relating to the total dollar amount of the credits claimed under this section by qualified taxpayers described in clause (ii), (iii), (iv), or (v) of subparagraph (A) of paragraph (14) of subdivision (b). (n) (1) This section shall remain in effect only until December 1, 2029, and as of that date is repealed. (2) Notwithstanding paragraph (1) of subdivision (a), this section shall continue to be operative for taxable years beginning on or after January 1, 2026, but only with respect to qualified full-time employees who commenced employment with a qualified taxpayer in a designated census tract or economic development area in a taxable year beginning before January 1, 2026. (3) This section shall remain operative for any qualified taxpayer with respect to any qualified full-time employee after the designated census tract is no longer designated or an economic development area ceases to be an economic development area, as defined in this section, for the remaining period, if any, of the 60-month period after the original date of hiring of an otherwise qualified full-time employee and any wages paid or incurred with respect to those qualified full-time employees after the designated census tract is no longer designated or an economic development area ceases to be an economic development area, as defined in this section, shall be treated as qualified wages under this section, provided the employee satisfies any other requirements of paragraphs (13) and (15) of subdivision (b), as if the designated census tract was still designated and binding or the economic development area was still in existence. (o) For purposes of complying with Section 41 as it relates to the amendments made to this section and Section 23626 by the act adding this subdivision, hereafter the “expansion of the credit,” the Legislature finds as follows: (1) The specific goal, purpose, and objective of the expansion of the credit is to incentivize semiconductor, lithium production and manufacturing, and electric airplane companies to invest in California-based operations. (2) The performance indicator for the Legislature to use in determining whether the expansion of the credit is achieving the stated goal, purpose, and objective is the total dollar amount of credits claimed by taxpayers engaged in semiconductor manufacturing, semiconductor research and development, lithium production and manufacturing, and electric airplane manufacturing, as reported pursuant to subparagraph (B) of paragraph (2) of subdivision (m) of this section and subparagraph (B) of paragraph (2) of subdivision (l) of Section 23626. (p) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2023. (Amended by Stats. 2023, Ch. 55, Sec. 3. (SB 131) Effective July 10, 2023. Repealed on December 1, 2029, as prescribed in subd. (n).)
  192. 17053.75.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    Qualified taxpayers may claim an income tax credit for dues paid to a bona fide labor organization, subject to listed limits and adjustments.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.75. (a) For taxable years beginning on or after January 1, 2024, and except as provided in subdivision (b), there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to the greater of the following: (1) Dues paid in that taxable year by the qualified taxpayer multiplied by the workers’ tax credit adjustment factor. (2) The amount equal to dues paid in that taxable year by the qualified taxpayer, not to exceed an amount set pursuant to subdivision (b) of up to one hundred dollars ($100), recomputed annually beginning January 1, 2025, in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041. (b) (1) Unless otherwise specified in the annual Budget Act, or a bill providing for appropriations related to the annual Budget Act, enacted after May 1, 2024, the workers’ tax credit adjustment factor shall be 0 percent for that year, and the dollar amount allowed pursuant to paragraph (2) of subdivision (a) shall be zero dollars ($0) for that taxable year. (2) It is the intent of the Legislature that the workers’ tax credit adjustment factor and the maximum dollar amount allowed pursuant to paragraph (2) of subdivision (a) shall be set in a manner to limit the annual revenue loss resulting from this section to no more than four hundred million dollars ($400,000,000). (c) For purposes of this section, the following definitions apply: (1) “Bona fide labor organization” means a labor organization that satisfies all of the following: (A) Is exempt from income taxes pursuant to Section 23701a. (B) Actually represents employees in California as to wages, hours, and working conditions. (C) Its officers have been democratically elected by its membership or otherwise in a manner consistent with federal law. (D) Is free of domination or interference by any employer and has received no improper assistance or support from any employer. (2) “Dues” means the amount paid or incurred during the taxable year by a taxpayer for dues or dues equivalents paid to a bona fide labor organization. (3) “Qualified taxpayer” means an individual who satisfies both of the following: (A) Is represented for purposes of collective bargaining by, and who pays dues or dues equivalents to, a bona fide labor organization. (B) Meets any of the following requirements: (i) Has wages subject to withholding pursuant to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. (ii) Is a provider of in-home supportive services pursuant to Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code, or pursuant to Section 14132.95, 14132.952, or 14132.956 of the Welfare and Institutions Code. (iii) Is a provider of waiver personal care services pursuant to Section 14132.97 of the Welfare and Institutions Code. (d) The credit allowed pursuant to subdivision (a) shall be in lieu of any other credit or deduction that the qualified taxpayer may otherwise be allowed under this part with respect to amounts taken into account in calculating the credit allowed by this section. (e) If the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall, upon appropriation by the Legislature, be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. (f) (1) For purposes of complying with Section 41, the Legislature finds and declares the following: (A) The purpose of the credit allowed under this section is to help individuals with the cost of being a member of a union. (B) The performance indicators for the Legislature to use when measuring whether the tax expenditure meets the goals, purposes, and objectives shall be the total number of returns claiming the credit and the aggregate dollar amount of credits claimed. (2) (A) The Franchise Tax Board shall provide a report to the Legislature in compliance with Section 9795 of the Government Code, beginning in the 2026 calendar year and then on an annual basis each year thereafter, while the credit is in effect, on the total number of returns claiming the credit and the aggregate dollar amount of credits claimed for the most recent taxable year for which information is available. (B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542. (Added by Stats. 2022, Ch. 737, Sec. 3. (AB 158) Effective September 29, 2022.)
  193. 17053.80.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section gives a tax credit to qualified taxpayers that employ eligible individuals, with the credit amount based on hours worked and subject to filing and reservation requirements.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.80. (a) (1) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed to a qualified taxpayer that employs an eligible individual a credit against the “net tax,” as defined in Section 17039, an amount as determined pursuant to paragraph (2), not to exceed thirty thousand dollars ($30,000) per taxpayer per taxable year. (2) A qualified taxpayer shall be allowed the credit pursuant to this section in the following amounts per taxable year: (A) Two thousand five hundred dollars ($2,500) for each eligible individual that works at least 500 hours, but fewer than 1,000 hours, for the eligible employer during the taxable year in which the credit is claimed. (B) Five thousand dollars ($5,000) for each eligible individual that works at least 1,000 hours, but fewer than 1,500 hours, for the eligible employer during the taxable year in which the credit is claimed. (C) Seven thousand five hundred dollars ($7,500) for each eligible individual that works at least 1,500 hours, but fewer than 2,000 hours, for the eligible employer during the taxable year in which the credit is claimed. (D) Ten thousand dollars ($10,000) for each eligible individual that works at least 2,000 hours for the eligible employer during the taxable year in which the credit is claimed. (b) For purposes of this section: (1) “Continuum of care” has the same meaning as in Section 578.3 of Title 24 of the Code of Federal Regulations. (2) “Coordinated entry system” means a centralized or coordinated assessment system developed pursuant to Section 578.7 of Title 24 of the Code of Federal Regulations, designed to coordinate homelessness program participant intake, assessment, and provision of referrals. (3) “Eligible employer” means a taxpayer that meets all of the following requirements: (A) Pays wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. (B) Pays at least 120 percent of minimum wage. (C) Provides to the Franchise Tax Board, upon request, a copy of the certification received for each eligible individual for each tax year that the credit is claimed for that eligible individual by that eligible employer. (4) “Eligible individual” means a person who meets both of the following criteria: (A) The person is homeless or has received supportive services from a homeless services provider, as designated by a local continuum of care or a community-based service provider that is connected to the local coordinated entry system or to a local Homeless Management Information System, on the date of the hire or anytime during the 180-day period immediately before the hire. (B) The person has been issued a certification pursuant to paragraph (2) of subdivision (c), and that certification has not expired. (5) “Homeless Management Information System” has the same meaning as in Section 578.3 of Title 24 of the Code of Federal Regulations. “Homeless Management Information System” includes the use of a comparable database by a victim services provider or legal services provider that is permitted by the federal government under Part 576 (commencing with Section 576.1) of Title 24 of the Code of Federal Regulations. (6) “Person is homeless” means the same as “homeless” as defined in Section 578.3 of Title 24 of the Code of Federal Regulations. (7) “Minimum wage” means the wage established pursuant to Chapter 1 (commencing with Section 1171) of Part 4 of Division 2 of the Labor Code. (8) “Qualified taxpayer” means an eligible employer that pays wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code to an eligible individual. (c) (1) A credit shall not be allowed under this section unless the eligible employer submits to the Franchise Tax Board, upon request, a certification issued by a continuum of care, or a community-based service provider that is connected to the local coordinated entry system or to a local Homeless Management Information System, or other program as specified by the Franchise Tax Board. (2) A continuum of care or a community-based service provider that is connected to the local coordinated entry system or to a local Homeless Management Information System, shall issue certifications for eligible individuals. (3) The certification pursuant to paragraph (2) shall be issued in a form and manner prescribed by the Franchise Tax Board. (4) A certification issued pursuant to this subdivision shall expire one year after issuance. (5) An eligible individual may receive a new certification pursuant to this subdivision if they are homeless or have received supportive services from a homeless services provider, as designated by a local continuum of care or a community-based service provider that is connected to the local coordinated entry system or to a local Homeless Management Information System, on the date that the eligible individual receives a new certification or anytime during the 180-day period immediately before that date. (d) (1) The total aggregate amount of the credit that may be allocated by credit reservations per calendar year to all qualified taxpayers pursuant to this section and Section 23629 shall not exceed thirty million dollars ($30,000,000), plus the unallocated credit amount, if any, from the preceding calendar year. (2) (A) To be eligible for the credit allowed by this section with respect to an eligible individual, a qualified taxpayer shall request a credit reservation from the Franchise Tax Board, in the form and manner prescribed by the Franchise Tax Board, consistent with either of the following, as applicable: (i) Within 30 days of hiring an eligible individual. (ii) Within 60 days of receiving a new certification pursuant to paragraph (5) of subdivision (c). (B) To obtain a credit reservation with respect to an eligible individual, the qualified taxpayer shall provide necessary information, as determined by the Franchise Tax Board, including the name, social security number, how many hours the eligible individual is expected to work for the next 12 months, and the start date of employment. (3) The Franchise Tax Board shall do both of the following: (A) Approve a tentative credit reservation with respect to an eligible individual. (B) Subject to the annual cap established as provided in paragraph (1), allocate an aggregate amount of credits under this section and Section 23629, and allocate any carryover of unallocated credits from prior years. (e) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding two years if necessary, until the credit is exhausted. (f) If the credit allowed by this section is claimed by the qualified taxpayer, a deduction otherwise allowed under this part for any amount of wages paid or incurred by the qualified taxpayer as a trade or business expense to an eligible individual shall be reduced by the amount of the credit allowed by this section. (g) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (h) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. (Amended by Stats. 2023, Ch. 131, Sec. 208. (AB 1754) Effective January 1, 2024. Repealed as of December 1, 2027, by its own provisions.)
  194. 17053.82.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    Certain qualified taxpayers can claim a $10,000 credit against net tax for taxable years starting in 2023 through 2027.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.82. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000). (b) For purposes of this section, “qualified taxpayer” means an equity licensee that has received approval, including approval contingent upon the availability of funds, for the fee waiver and deferral program established pursuant to Section 26249 of the Business and Professions Code, as administered by the Department of Cannabis Control. (c) On January 1, 2024, and every 6 months thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of qualified taxpayers for the purposes of administering this section. The Department of Cannabis Control may satisfy this requirement by maintaining a database that makes this information available to the Franchise Tax Board. (d) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted. (e) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (f) This section and Section 23682 shall be known and may be cited as the Cannabis Equity Tax Credit. (g) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. (Added by Stats. 2022, Ch. 56, Sec. 15. (AB 195) Effective June 30, 2022. Repealed as of December 1, 2028, by its own provisions.)
  195. 17053.85.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section provides a California film tax credit for qualified taxpayers, with rules for how it is calculated, certified, sold in limited cases, and reported.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.85. (a) (1) For taxable years beginning on or after January 1, 2011, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to the applicable percentage, as specified in paragraph (4), of the qualified expenditures for the production of a qualified motion picture in California. (2) The credit shall be allowed for the taxable year in which the California Film Commission issues the credit certificate pursuant to subdivision (g) for the qualified motion picture, and shall be for the applicable percentage of all qualified expenditures paid or incurred by the qualified taxpayer in all taxable years for that qualified motion picture. (3) The amount of the credit allowed to a qualified taxpayer shall be limited to the amount specified in the credit certificate issued to the qualified taxpayer by the California Film Commission pursuant to subdivision (g). (4) For purposes of paragraphs (1) and (2), the applicable percentage shall be: (A) Twenty percent of the qualified expenditures attributable to the production of a qualified motion picture in California. (B) Twenty-five percent of the qualified expenditures attributable to the production of a qualified motion picture in California where the qualified motion picture is a television series that relocated to California or an independent film. (b) For purposes of this section: (1) “Ancillary product” means any article for sale to the public that contains a portion of, or any element of, the qualified motion picture. (2) “Budget” means an estimate of all expenses paid or incurred during the production period of a qualified motion picture. It shall be the same budget used by the qualified taxpayer and production company for all qualified motion picture purposes. (3) “Clip use” means a use of any portion of a motion picture, other than the qualified motion picture, used in the qualified motion picture. (4) “Credit certificate” means the certificate issued by the California Film Commission pursuant to subparagraph (C) of paragraph (2) of subdivision (g). (5) (A) “Employee fringe benefits” means the amount allowable as a deduction under this part to the qualified taxpayer involved in the production of the qualified motion picture, exclusive of any amounts contributed by employees, for any year during the production period with respect to any of the following: (i) Employer contributions under any pension, profit-sharing, annuity, or similar plan. (ii) Employer-provided coverage under any accident or health plan for employees. (iii) The employer’s cost of life or disability insurance provided to employees. (B) Any amount treated as wages under clause (i) of subparagraph (A) of paragraph (18) shall not be taken into account under this paragraph. (6) “Independent film” means a motion picture with a minimum budget of one million dollars ($1,000,000) and a maximum budget of ten million dollars ($10,000,000) that is produced by a company that is not publicly traded and publicly traded companies do not own, directly or indirectly, more than 25 percent of the producing company. (7) “Licensing” means any grant of rights to distribute the qualified motion picture, in whole or in part. (8) “New use” means any use of a motion picture in a medium other than the medium for which it was initially created. (9) (A) “Postproduction” means the final activities in a qualified motion picture’s production, including editing, foley recording, automatic dialogue replacement, sound editing, scoring and music editing, beginning and end credits, negative cutting, negative processing and duplication, the addition of sound and visual effects, soundmixing, film-to-tape transfers, encoding, and color correction. (B) “Postproduction” does not include the manufacture or shipping of release prints. (10) “Preproduction” means the process of preparation for actual physical production which begins after a qualified motion picture has received a firm agreement of financial commitment, or is greenlit, with, for example, the establishment of a dedicated production office, the hiring of key crew members, and includes, but is not limited to, activities that include location scouting and execution of contracts with vendors of equipment and stage space. (11) “Principal photography” means the phase of production during which the motion picture is actually shot, as distinguished from preproduction and postproduction. (12) “Production period” means the period beginning with preproduction and ending upon completion of postproduction. (13) “Qualified entity” means a personal service corporation as defined in Section 269A(b)(1) of the Internal Revenue Code, a payroll services corporation, or any entity receiving qualified wages with respect to services performed by a qualified individual. (14) (A) “Qualified individual” means any individual who performs services during the production period in an activity related to the production of a qualified motion picture. (B) “Qualified individual” shall not include either of the following: (i) Any individual related to the qualified taxpayer as described in subparagraph (A), (B), or (C) of Section 51(i)(1) of the Internal Revenue Code. (ii) Any 5-percent owner, as defined in Section 416(i)(1)(B) of the Internal Revenue Code, of the qualified taxpayer. (15) (A) “Qualified motion picture” means a motion picture that is produced for distribution to the general public, regardless of medium, that is one of the following: (i) A feature with a minimum production budget of one million dollars ($1,000,000) and a maximum production budget of seventy-five million dollars ($75,000,000). (ii) A movie of the week or miniseries with a minimum production budget of five hundred thousand dollars ($500,000). (iii) A new television series produced in California with a minimum production budget of one million dollars ($1,000,000) licensed for original distribution on basic cable. (iv) An independent film. (v) A television series that relocated to California. (B) To qualify as a “qualified motion picture,” all of the following conditions shall be satisfied: (i) At least 75 percent of the production days occur wholly in California or 75 percent of the production budget is incurred for payment for services performed within the state and the purchase or rental of property used within the state. (ii) Production of the qualified motion picture is completed within 30 months from the date on which the qualified taxpayer’s application is approved by the California Film Commission. For purposes of this section, a qualified motion picture is “completed” when the process of postproduction has been finished. (iii) The copyright for the motion picture is registered with the United States Copyright Office pursuant to Title 17 of the United States Code. (iv) Principal photography of the qualified motion picture commences after the date on which the application is approved by the California Film Commission, but no later than 180 days after the date of that approval. (C) For the purposes of subparagraph (A), in computing the total wages paid or incurred for the production of a qualified motion picture, all amounts paid or incurred by all persons or entities that share in the costs of the qualified motion picture shall be aggregated. (D) “Qualified motion picture” shall not include commercial advertising, music videos, a motion picture produced for private noncommercial use, such as weddings, graduations, or as part of an educational course and made by students, a news program, current events or public events program, talk show, game show, sporting event or activity, awards show, telethon or other production that solicits funds, reality television program, clip-based programming if more than 50 percent of the content is comprised of licensed footage, documentaries, variety programs, daytime dramas, strip shows, one-half hour (air time) episodic television shows, or any production that falls within the recordkeeping requirements of Section 2257 of Title 18 of the United States Code. (16) “Qualified expenditures” means amounts paid or incurred to purchase or lease tangible personal property used within this state in the production of a qualified motion picture and payments, including qualified wages, for services performed within this state in the production of a qualified motion picture. (17) (A) “Qualified taxpayer” means a taxpayer who has paid or incurred qualified expenditures and has been issued a credit certificate by the California Film Commission pursuant to subdivision (g). (B) In the case of any pass-thru entity, the determination of whether a taxpayer is a qualified taxpayer under this section shall be made at the entity level and any credit under this section is not allowed to the pass-thru entity, but shall be passed through to the partners or shareholders in accordance with applicable provisions of Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). For purposes of this paragraph, “pass-thru entity” means any entity taxed as a partnership or “S” corporation. (18) (A) “Qualified wages” means all of the following: (i) Any wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code that were paid or incurred by any taxpayer involved in the production of a qualified motion picture with respect to a qualified individual for services performed on the qualified motion picture production within this state. (ii) The portion of any employee fringe benefits paid or incurred by any taxpayer involved in the production of the qualified motion picture that are properly allocable to qualified wage amounts described in clause (i). (iii) Any payments made to a qualified entity for services performed in this state by qualified individuals within the meaning of paragraph (14). (iv) Remuneration paid to an independent contractor who is a qualified individual for services performed within this state by that qualified individual. (B) “Qualified wages” shall not include any of the following: (i) Expenses, including wages, related to new use, reuse, clip use, licensing, secondary markets, or residual compensation, or the creation of any ancillary product, including, but not limited to, a soundtrack album, toy, game, trailer, or teaser. (ii) Expenses, including wages, paid or incurred with respect to acquisition, development, turnaround, or any rights thereto. (iii) Expenses, including wages, related to financing, overhead, marketing, promotion, or distribution of a qualified motion picture. (iv) Expenses, including wages, paid per person per qualified motion picture for writers, directors, music directors, music composers, music supervisors, producers, and performers, other than background actors with no scripted lines. (19) “Residual compensation” means supplemental compensation paid at the time that a motion picture is exhibited through new use, reuse, clip use, or in secondary markets, as distinguished from payments made during production. (20) “Reuse” means any use of a qualified motion picture in the same medium for which it was created, following the initial use in that medium. (21) “Secondary markets” means media in which a qualified motion picture is exhibited following the initial media in which it is exhibited. (22) “Television series that relocated to California” means a television series, without regard to episode length or initial media exhibition, that filmed all of its prior season or seasons outside of California and for which the taxpayer certifies that the credit provided pursuant to this section is the primary reason for relocating to California. (c) (1) Notwithstanding any other law, a qualified taxpayer may sell any credit allowed under this section that is attributable to an independent film, as defined in paragraph (6) of subdivision (b), to an unrelated party. (2) The qualified taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in the form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit, including the social security or other taxpayer identification number of the unrelated party to whom the credit has been sold, the face amount of the credit sold, and the amount of consideration received by the qualified taxpayer for the sale of the credit. (3) In the case where the credit allowed under this section exceeds the “net tax,” the excess credit may be carried over to reduce the “net tax” in the following taxable year, and succeeding five taxable years, if necessary, until the credit has been exhausted. (4) A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party. (5) A party that has acquired tax credits under this section shall be subject to the requirements of this section. (6) In no event may a qualified taxpayer assign or sell any tax credit to the extent the tax credit allowed by this section is claimed on any tax return of the qualified taxpayer. (7) In the event that both the taxpayer originally allocated a credit under this section by the California Film Commission and a taxpayer to whom the credit has been sold both claim the same amount of credit on their tax returns, the Franchise Tax Board may disallow the credit of either taxpayer, so long as the statute of limitations upon assessment remains open. (8) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this subdivision. (9) Subdivision (g) of Section 17039 shall not apply to any credit sold pursuant to this subdivision. (10) For purposes of this subdivision, the unrelated party or parties that purchase a credit pursuant to this subdivision shall be treated as a qualified taxpayer pursuant to paragraph (1) of subdivision (a). (d) No credit shall be allowed pursuant to this section unless the qualified taxpayer provides the following to the California Film Commission: (1) Identification of each qualified individual. (2) The specific start and end dates of production. (3) The total wages paid. (4) The amount of qualified wages paid to each qualified individual. (5) The copyright registration number, as reflected on the certificate of registration issued under the authority of Section 410 of Title 17 of the United States Code, relating to registration of claim and issuance of certificate. The registration number shall be provided on the return claiming the credit. (6) The total amounts paid or incurred to purchase or lease tangible personal property used in the production of a qualified motion picture. (7) Information to substantiate its qualified expenditures. (8) Information required by the California Film Commission under regulations promulgated pursuant to subdivision (g) necessary to verify the amount of credit claimed. (e) The California Film Commission may prescribe rules and regulations to carry out the purposes of this section including any rules and regulations necessary to establish procedures, processes, requirements, and rules identified in or required to implement this section. The regulations shall include provisions to set aside a percentage of annual credit allocations for independent films. (f) If the qualified taxpayer fails to provide the copyright registration number as required in paragraph (5) of subdivision (d), the credit shall be disallowed and assessed and collected under Section 19051 until the procedures are satisfied. (g) For purposes of this section, the California Film Commission shall do the following: (1) On or after July 1, 2009, and before July 1, 2017, allocate tax credits to applicants. (A) Establish a procedure for applicants to file with the California Film Commission a written application, on a form jointly prescribed by the California Film Commission and the Franchise Tax Board for the allocation of the tax credit. The application shall include, but not be limited to, the following information: (i) The budget for the motion picture production. (ii) The number of production days. (iii) A financing plan for the production. (iv) The diversity of the workforce employed by the applicant, including, but not limited to, the ethnic and racial makeup of the individuals employed by the applicant during the production of the qualified motion picture, to the extent possible. (v) All members of a combined reporting group, if known at the time of the application. (vi) Financial information, if available, including, but not limited to, the most recently produced balance sheets, annual statements of profits and losses, audited or unaudited financial statements, summary budget projections or results, or the functional equivalent of these documents of a partnership or owner of a single member limited liability company that is disregarded pursuant to Section 23038. The information provided pursuant to this clause shall be confidential and shall not be subject to public disclosure. (vii) The names of all partners in a partnership not publicly traded or the names of all members of a limited liability company classified as a partnership not publicly traded for California income tax purposes that have a financial interest in the applicant’s qualified motion picture. The information provided pursuant to this clause shall be confidential and shall not be subject to public disclosure. (viii) Detailed narratives, for use only by the Legislative Analyst’s Office in conducting a study of the effectiveness of this credit, that describe the extent to which the credit is expected to influence or affect filming and other business location decisions, hiring decisions, salary decisions, and any other financial matters of the applicant. (ix) Any other information deemed relevant by the California Film Commission or the Franchise Tax Board. (B) Establish criteria, consistent with the requirements of this section, for allocating tax credits. (C) Determine and designate applicants who meet the requirements of this section. (D) Process and approve, or reject, all applications on a first-come-first-served basis. (E) Subject to the annual cap established as provided in subdivision (i), allocate an aggregate amount of credits under this section and Section 23685, and allocate any carryover of unallocated credits from prior years. (2) Certify tax credits allocated to qualified taxpayers. (A) Establish a verification procedure for the amount of qualified expenditures paid or incurred by the applicant, including, but not limited to, updates to the information in subparagraph (A) of paragraph (1) of subdivision (g). (B) Establish audit requirements that must be satisfied before a credit certificate may be issued by the California Film Commission. (C) (i) Establish a procedure for a qualified taxpayer to report to the California Film Commission, prior to the issuance of a credit certificate, the following information: (I) If readily available, a list of the states, provinces, or other jurisdictions in which any member of the applicant’s combined reporting group in the same business unit as the qualified taxpayer that, in the preceding calendar year, has produced a qualified motion picture intended for release in the United States market. For purposes of this clause, “qualified motion picture” shall not include any episodes of a television series that were complete or in production prior to July 1, 2009. (II) Whether a qualified motion picture described in subclause (I) was awarded any financial incentive by the state, province, or other jurisdiction that was predicated on the performance of primary principal photography or postproduction in that location. (ii) The California Film Commission may provide that the report required by this subparagraph be filed in a single report provided on a calendar year basis for those qualified taxpayers that receive multiple credit certificates in a calendar year. (D) Issue a credit certificate to a qualified taxpayer upon completion of the qualified motion picture reflecting the credit amount allocated after qualified expenditures have been verified under this section. The amount of credit shown in the credit certificate shall not exceed the amount of credit allocated to that qualified taxpayer pursuant to this section. (3) Obtain, when possible, the following information from applicants that do not receive an allocation of credit: (A) Whether the qualified motion picture that was the subject of the application was completed. (B) If completed, in which state or foreign jurisdiction was the primary principal photography completed. (C) Whether the applicant received any financial incentives from the state or foreign jurisdiction to make the qualified motion picture in that location. (4) Provide the Legislative Analyst’s Office, upon request, any or all application materials or any other materials received from, or submitted by, the applicants, in electronic format when available, including, but not limited to, information provided pursuant to clauses (i) to (ix), inclusive, of subparagraph (A) of paragraph (1). (5) The information provided to the California Film Commission pursuant to this section shall constitute confidential tax information for purposes of Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2. (h) (1) The California Film Commission shall annually provide the Legislative Analyst’s Office, the Franchise Tax Board, and the board with a list of qualified taxpayers and the tax credit amounts allocated to each qualified taxpayer by the California Film Commission. The list shall include the names and taxpayer identification numbers, including taxpayer identification numbers of each partner or shareholder, as applicable, of the qualified taxpayer. (2) (A) Notwithstanding paragraph (5) of subdivision (g), the California Film Commission shall annually post on its Internet Web site and make available for public release the following: (i) A table which includes all of the following information: a list of qualified taxpayers and the tax credit amounts allocated to each qualified taxpayer by the California Film Commission, the number of production days in California the qualified taxpayer represented in its application would occur, the number of California jobs that the qualified taxpayer represented in its application would be directly created by the production, and the total amount of qualified expenditures expected to be spent by the production. (ii) A narrative staff summary describing the production of the qualified taxpayer as well as background information regarding the qualified taxpayer contained in the qualified taxpayer’s application for the credit. (B) Nothing in this subdivision shall be construed to make the information submitted by an applicant for a tax credit under this section a public record. (i) (1) The aggregate amount of credits that may be allocated in any fiscal year pursuant to this section and Section 23685 shall be an amount equal to the sum of all of the following: (A) One hundred million dollars ($100,000,000) in credits for the 2009–10 fiscal year and each fiscal year thereafter, through and including the 2016–17 fiscal year. (B) The unused allocation credit amount, if any, for the preceding fiscal year. (C) The amount of previously allocated credits not certified. (2) If the amount of credits applied for in any particular fiscal year exceeds the aggregate amount of tax credits authorized to be allocated under this section, such excess shall be treated as having been applied for on the first day of the subsequent fiscal year. However, credits may not be allocated from a fiscal year other than the fiscal year in which the credit was originally applied for or the immediately succeeding fiscal year. (3) Notwithstanding the foregoing, the California Film Commission shall set aside up to ten million dollars ($10,000,000) of tax credits each fiscal year for independent films allocated in accordance with rules and regulations developed pursuant to subdivision (e). (4) Any act that reduces the amount that may be allocated pursuant to paragraph (1) constitutes a change in state taxes for the purpose of increasing revenues within the meaning of Section 3 of Article XIII A of the California Constitution and may be passed by not less than two-thirds of all Members elected to each of the two houses of the Legislature. (j) The California Film Commission shall have the authority to allocate tax credits in accordance with this section and in accordance with any regulations prescribed pursuant to subdivision (e) upon adoption. (Amended by Stats. 2012, Ch. 841, Sec. 2. (AB 2026) Effective September 30, 2012.)
  196. 17053.87.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section gives a tax credit for eligible contributions to the College Access Tax Credit Fund, with certification by the California Educational Facilities Authority.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.87. (a) For the taxable years beginning on or after January 1, 2017, and before January 1, 2028, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the amount contributed by the taxpayer for the taxable year to the College Access Tax Credit Fund, as allocated and certified by the California Educational Facilities Authority. (b) (1) The aggregate amount of credit that may be allocated and certified pursuant to this section, Section 12207, and Section 23687 shall be an amount equal to five hundred million dollars ($500,000,000). (2) (A) For the purposes of this section, the California Educational Facilities Authority shall do all of the following: (i) On a first-come-first-served basis, allocate and certify tax credits to taxpayers under this section. (ii) Establish a procedure for taxpayers to contribute to the College Access Tax Credit Fund and to obtain from the California Educational Facilities Authority a certification for the credit allowed by this section. The procedure shall require the California Educational Facilities Authority to certify the contribution amount eligible for credit within 45 days following receipt of the contribution. (iii) Provide to the Franchise Tax Board a copy of each credit certificate issued for the calendar year by March 1 of the calendar year immediately following the year in which those certificates are issued. (B) (i) The California Educational Facilities Authority shall adopt any regulations necessary or appropriate to implement this paragraph. (ii) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any regulation adopted by the California Educational Facilities Authority pursuant to clause (i). (c) (1) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding five years if necessary, until the credit is exhausted. (2) A deduction shall not be allowed under this part for amounts taken into account under this section in calculating the credit allowed by this section. (d) (1) The College Access Tax Credit Fund is hereby created as a special fund in the State Treasury. All revenue in this special fund shall be allocated as follows: (A) First to the General Fund in an amount equal to the aggregate amount of certified credits allowed pursuant to this section and Section 23687 for the taxable year. Funds allocated to the General Fund shall be considered General Fund revenues for purposes of Sections 8 and 8.5 of Article XVI of the California Constitution. (B) Second, upon appropriation, to the Department of Insurance, the Franchise Tax Board, the California Educational Facilities Authority, the Controller, and the Student Aid Commission for reimbursement of all administrative costs incurred by those agencies in connection with their duties under this section, Section 12207, Section 23687, and Section 69431.7 of the Education Code. (C) Third, upon appropriation, to the California Educational Facilities Authority for outreach purposes to inform taxpayers about the College Access Tax Credit Fund and the credits allowed by this section, Section 12207, and Section 23687. (D) Fourth, notwithstanding Section 13340 of the Government Code, the remaining revenue shall be continuously appropriated to the Student Aid Commission for purposes of awarding students pursuant to Article 16 (commencing with Section 69840) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code. (2) The tax credit allowed by subdivision (a), subdivision (a) of Section 12207, and subdivision (a) of Section 23687 for donations to the College Access Tax Credit Fund shall be known as the College Access Tax Credit. (e) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. (Amended by Stats. 2023, Ch. 278, Sec. 4. (AB 1400) Effective January 1, 2024. Repealed as of December 1, 2028, by its own provisions.)
  197. 17053.88.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    Qualified taxpayers may claim a 15% credit against net tax for qualifying food donations to a California food bank, subject to timing and documentation rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.88.5. (a) In the case of a qualified taxpayer who donates qualified donation items to a food bank located in California under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code, for taxable years beginning on or after January 1, 2017, and before January 1, 2027, there shall be allowed as a credit against the “net tax,” defined by Section 17039, an amount equal to 15 percent of the qualified value of those qualified donation items. (b) For purposes of this section: (1) “Qualified donation item” means fresh fruits or fresh vegetables and the following raw agricultural products or processed foods: (A) All of the following: (i) “Fruits, nuts, or vegetables” as defined in Section 42510 of the Food and Agricultural Code. (ii) “Meat food product” as defined in Section 18665 of the Food and Agricultural Code. (iii) “Poultry” as defined in Section 18675 of the Food and Agricultural Code. (iv) “Eggs” as defined in Section 75027 of the Food and Agricultural Code. (v) “Fish” as defined in Section 58609 of the Food and Agricultural Code. (B) All of the following food as defined in Section 109935 of the Health and Safety Code: (i) Rice. (ii) Beans. (iii) Fruits, nuts, and vegetables in canned, frozen, dried, dehydrated, and 100 percent juice forms. (iv) Any cheese, milk, yogurt, butter, and dehydrated milk meeting the requirements in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. (v) Infant formula subject to Section 114094.5 of the Health and Safety Code. (vi) Vegetable oil and olive oil. (vii) Soup, pasta sauce, and salsa. (viii) Bread and pasta. (ix) Canned meats and canned seafood. (2) (A) “Qualified taxpayer” means the person responsible for planting a crop, managing the crop, and harvesting the crop from the land. (B) (i) “Qualified taxpayer” also means the person responsible for growing or raising a qualified donation item, or harvesting, packing, or processing a qualified donation item, provided that person is not a retailer. (ii) As used in this subparagraph, “retailer” means a person primarily engaged in the business of making retail sales directly to the public. (3) (A) “Qualified value” shall be calculated by using the weighted average wholesale price based on the qualified taxpayer’s total like grade wholesale sales of the donated item sold within the calendar month of the qualified taxpayer’s donation. (B) If no wholesale sales of the donated item have occurred in the calendar month of the qualified taxpayer’s donation, the “qualified value” shall be equal to the nearest regional wholesale market price for the calendar month of the donation based upon the same grade products as published by the United States Department of Agriculture’s Agricultural Marketing Service or its successor. (c) If the credit allowed by this section is claimed by the qualified taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the qualified taxpayer that is eligible for the credit shall be reduced by the amount of the credit provided in subdivision (a). (d) The qualified taxpayer shall provide to the food bank the qualified value of the qualified donation items and information regarding the origin of where the qualified donation items were grown, processed, or both grown and processed. Upon receipt of the qualified donation items, the food bank shall provide a certificate to the qualified taxpayer. The certificate shall contain a statement signed and dated by a person authorized by that food bank that the item is donated under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code. The certificate shall also contain the type and quantity of items donated, the name of the qualified taxpayer or qualified taxpayers, the name and address of the food bank, and, as provided by the qualified taxpayer, the qualified value of the qualified donation items and their origins. Upon the request of the Franchise Tax Board, the qualified taxpayer shall provide a copy of the certification to the Franchise Tax Board. (e) The credit allowed by this section may be claimed only on a timely filed original return. (f) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and for the six succeeding years if necessary, until the credit has been exhausted. (g) In accordance with Section 41, the purpose of the credit is to increase donations to food banks. Using the information available to the Franchise Tax Board from the certificates required under subdivision (d) and subdivision (d) of Section 23688.5, the Franchise Tax Board shall report to the Legislature on or before December 1, 2019, and each December 1 thereafter until the inoperative date specified in subdivision (h), regarding the utilization of the credit authorized by this section and Section 23688.5. The Franchise Tax Board shall also include in the report the qualified value of the qualified donation items, the county in which the qualified donation items originated, and the month the donation was made. (h) (1) A report required to be submitted pursuant to subdivision (g) shall be submitted in compliance with Section 9795 of the Government Code. (2) The requirement for submitting a report imposed under subdivision (g) is inoperative on January 1, 2026, pursuant to Section 10231.5 of the Government Code. (i) This section shall be repealed on December 1, 2027. (j) The amendments made to this section by Chapter 431 of the Statutes of 2019 shall apply to taxable years beginning on or after January 1, 2020. (Amended by Stats. 2021, Ch. 82, Sec. 10. (AB 150) Effective July 16, 2021. Repealed as of December 1, 2027, by its own provisions.)
  198. 17053.91.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section allows a tax credit for certain historic rehabilitation projects, but the taxpayer must apply for a credit allocation and follow the Office of Historic Preservation’s procedures.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.91. For each taxable year beginning on or after January 1, 2021, and before January 1, 2027, there shall be allowed to a taxpayer that receives a tax credit allocation a credit against the “net tax,” as defined in Section 17039, in an amount determined in accordance with Section 47 of the Internal Revenue Code, except as otherwise provided in this section. (a) (1) In lieu of the amount of credit computed pursuant to Section 47(a) of the Internal Revenue Code, the amount of credit for the taxable year shall be 20 percent of the qualified rehabilitation expenditures with respect to a certified historic structure. (2) The applicable percentage shall be 25 percent of the qualified rehabilitation expenditures with respect to a certified historic structure if that certified historic structure meets one of the following criteria: (A) The structure is located on federal surplus property, if obtained by a local agency under Section 54142 of the Government Code, on surplus state real property, as defined by Section 11011.1 of the Government Code, or on surplus land, as defined by subdivision (b) of Section 54221 of the Government Code. (B) The rehabilitated structure includes affordable housing for lower income households, as defined by Section 50079.5 of the Health and Safety Code. (C) The structure is located in a designated census tract, as defined in paragraph (7) of subdivision (b) of Section 17053.73. (D) The rehabilitated structure is a part of a military base reuse authority established pursuant to Title 7.86 (commencing with Section 67800) of the Government Code. (E) The structure is a transit-oriented development that is a higher density, mixed-use development within a walking distance of one-half mile of a transit station. (3) (A) The credit shall be allowed for qualified rehabilitation expenditures for a qualified residence determined by the California Tax Credit Allocation Committee and the Office of Historic Preservation to rehabilitate the historic character and improve the integrity of the residence in the year of completion in the percentages specified in paragraphs (1) and (2), as applicable, except that the credit shall only be allowed in an amount equal to or more than five thousand dollars ($5,000) but not exceeding twenty-five thousand dollars ($25,000). A taxpayer shall only be allowed a credit pursuant to this paragraph once every 10 taxable years. (B) Section 47(c)(1)(B)(ii) of the Internal Revenue Code, relating to special rule for phased rehabilitation, shall not apply. (b) For purposes of this section, the following definitions shall apply: (1) “Certified historic structure” has the same meaning as defined in Section 47(c)(3) of the Internal Revenue Code, that is a structure in this state and is listed on the California Register of Historical Resources. (2) “Qualified residence” has the same meaning as that term is defined in Section 163(h)(4) of the Internal Revenue Code, that will be owned and occupied by an individual taxpayer who has a modified adjusted gross income, as defined by Section 86(b)(2) of the Internal Revenue Code, of two hundred thousand dollars ($200,000) or less, as the taxpayer’s principal residence or what will be the taxpayer’s principal residence within two years after the rehabilitation of the residence. (3) (A) “Qualified rehabilitation expenditure” has the same meaning as that term is defined in Section 47(c)(2) of the Internal Revenue Code, except that qualified rehabilitation expenditures may include expenditures in connection with the rehabilitation of a building without regard to whether any portion of the building is or is reasonably expected to be tax-exempt use property. (B) “Qualified rehabilitation expenditure” has the same meaning as that term is defined in Section 47(c)(2) of the Internal Revenue Code and also means rehabilitation expenditures incurred by the taxpayer with respect to a qualified residence for the rehabilitation of the exterior of the building or rehabilitation necessary for the functioning of the home, including, but not limited to, rehabilitation of the electrical, plumbing, or foundation of the qualified residence. (C) The amendments made by Section 13402(b)(1)(B) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97) to Section 47(c)(2)(B)(iv) of the Internal Revenue Code, relating to certified historic structure, shall not apply. (c) (1) To be eligible for the credit allowed by this section, a taxpayer shall request a tax credit allocation from the California Tax Credit Allocation Committee, in conjunction with the Office of Historic Preservation. (2) To obtain a tax credit allocation, the taxpayer shall provide necessary information, as determined by the Office of Historic Preservation and the California Tax Credit Allocation Committee. (3) A tax credit allocation provided to a taxpayer shall not constitute a determination by the California Tax Credit Allocation Committee with respect to any of the requirements of this section regarding a taxpayer’s eligibility for the credit authorized by this section. (4) The Office of Historic Preservation shall establish in regulations the time period that a taxpayer who receives a tax credit allocation must commence rehabilitation after the issuance of the tax credit allocation. If rehabilitation is not commenced within the time period established by the office, the tax credit allocation shall be forfeited and the credit amount associated with the tax credit allocation shall be treated as an unused allocation tax credit amount. (d) A deduction shall not be allowed under this part for any expense for which a credit for that expense is allowed by this section. (e) If a credit is allowed under this section with respect to any property, the basis of that property shall be reduced by the amount of the credit allowed. (f) (1) A credit allowed under this section shall be claimed in the first taxable year in which the structure is placed in service. (2) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and the seven succeeding years, if necessary, until the credit is exhausted. (g) For purposes of this section, the Office of Historic Preservation shall do all of the following: (1) Adopt regulations to implement the requirements of this section. The regulations shall comply with the requirements of the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (2) Establish a written application, on a form jointly prescribed by the office and the California Tax Credit Allocation Committee, for the allocation of the tax credit. The written application shall require the applicant to include a summary of the expected economic benefits of the project. The economic benefits shall include, but are not limited to, all of the following: (A) The number of jobs created by the rehabilitation project, both during and after the rehabilitation of the structure. (B) The expected increase in state and local tax revenues derived from the rehabilitation project, including those from increased wages and property taxes. (C) Any additional incentives or contributions included in the rehabilitation project from federal, state, or local governments. (D) For the qualified rehabilitation expenditures with respect to a qualified residence, the rehabilitation has a public benefit, as determined jointly with the Office of Historic Preservation. (3) Establish a process to determine that applicants meet the requirements of this section and to ensure that the rehabilitation project meets the Secretary of the Interior’s Standards for Rehabilitation, as found in Part 67 of Title 36 of the Code of Federal Regulations. (4) Establish a process to approve, or reject, all tax credit allocation applications. (h) For purposes of this section, the California Tax Credit Allocation Committee shall do all of the following: (1) Establish a process jointly with the Office of Historic Preservation to implement the provisions of this section. (2) (A) Subject to the annual cap established as provided in subdivision (i), allocate on a first-come-first-served basis an aggregate amount of credits under this section and Section 23691, and allocate any carryover of unallocated credits from prior years. (B) A taxpayer shall be allocated a tax credit pursuant to the taxpayer’s tax credit allocation upon receipt by the California Tax Credit Allocation Committee of a cost certification for the qualified rehabilitation expenditures. For projects with qualified rehabilitation expenditures in excess of two hundred fifty thousand dollars ($250,000), the cost certification shall be issued by a licensed certified public accountant. (3) Certify tax credits allocated to taxpayers. (4) Provide the Franchise Tax Board an annual list of the taxpayers that were allocated a credit pursuant to this section and Section 23691, including each taxpayer’s taxpayer identification number, and the amount allocated to each taxpayer. (5) Establish procedures for the recapture of amounts allocated for a tax credit allowed to a taxpayer for the rehabilitation of a qualified residence if the taxpayer does not use the qualified residence as their principal residence within two years after the rehabilitation of the residence. (i) (1) The aggregate amount of credits that may be allocated in any calendar year pursuant to this section and Section 23691 shall be an amount equal to the sum of all of the following: (A) Fifty million dollars ($50,000,000) in tax credits for the 2021 calendar year and each calendar year thereafter, through and including the 2027 calendar year. (B) The unused allocation tax credit amount, if any, for the preceding calendar year. (2) Notwithstanding the foregoing, the California Tax Credit Allocation Committee shall set aside ten million dollars ($10,000,000) of tax credits that may be allocated each calendar year for taxpayers in the aggregate, pursuant to this paragraph and paragraph (2) of subdivision (i) of Section 23691, as follows: (A) Two million dollars ($2,000,000) of tax credits, in the aggregate, for taxpayers with qualified rehabilitation expenditures for a certified historic structure that is a qualified residence. After providing for the reallocation pursuant to subparagraph (C), to the extent that this amount is not fully allocated in any calendar year, the unused portion shall become available in subsequent calendar years for allocation to other taxpayers with qualified rehabilitation expenditures for a certified historic structure that is a qualified residence. (B) Eight million dollars ($8,000,000) of tax credits, in the aggregate, for taxpayers with qualified rehabilitation expenditures of less than one million dollars ($1,000,000) for any other certified historic building that is not a qualified residence. After providing for the reallocation pursuant to subparagraph (C), to the extent that this amount is not fully allocated in any calendar year, the unused portion shall become available in subsequent calendar years for allocation to other taxpayers, except those taxpayers subject to subparagraph (A). (C) Beginning July 1, 2025, any unused allocation set aside in subparagraphs (A) and (B) for the 2025 calendar year shall be made available within 90 days to taxpayers with qualified rehabilitation expenditures of one million dollars ($1,000,000) or more that submitted applications in that same calendar year and did not receive any allocation, are eligible to receive an allocation, and would have been the next affordable housing project application to receive an award. (j) In the case of any application for tax credits by an entity treated as a partnership for income tax purposes: (1) Credits awarded to a partnership shall be allocated to the partners of that partnership in accordance with the partnership agreement, regardless of how the federal historic rehabilitation tax credit with respect to the project is allocated to the partners, or whether the allocation of the credit under the terms of the partnership agreement has substantial economic effect, within the meaning of Section 704(b) of the Internal Revenue Code. (2) To the extent the allocation of the credit to a partner under this section lacks substantial economic effect, any loss or deduction otherwise allowable under this part that is attributable to the sale or other disposition of that partner’s partnership interest made prior to the expiration of the tax credit recapture period for the project described in paragraph (1) shall not be allowed in the taxable year in which the sale or other disposition occurs, but shall instead be deferred until, and treated as if, it occurred in the first taxable year immediately following the taxable year in which the tax credit recapture period expires for the project described in paragraph (1). The credits awarded to a partnership shall be allocated to the partners of that partnership in accordance with the partnership agreement. (k) For purposes of this section, the provisions of subsection (a) of Section 50 of the Internal Revenue Code shall apply. (l) Notwithstanding any other provision of this part, a credit allowed pursuant to this section may reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504, relating to the separate tax on lump-sum distributions, below the tentative minimum tax. (m) This section shall remain in effect regardless of the expiration or repeal of Section 47 of the Internal Revenue Code, relating to rehabilitation credit. (n) The California Tax Credit Allocation Committee and the Office of Historic Preservation may charge a reasonable fee in an amount that does not exceed the reasonable costs incurred by the California Tax Credit Allocation Committee and the Office of Historic Preservation in fulfilling the responsibilities described in paragraphs (4) and (5) of subdivision (g) and subdivision (h) and paragraphs (4) and (5) of subdivision (g) and subdivision (h) of Section 23691. (o) (1) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. (2) Unless otherwise specified in any bill providing for appropriations related to the Budget Act, for taxable years beginning on or after January 1, 2021, and before January 1, 2027, the amount of credit allowed pursuant to this section shall be zero dollars ($0). (Amended by Stats. 2025, Ch. 231, Sec. 4. (SB 711) Effective October 1, 2025. Repealed as of December 1, 2027, by its own provisions.)
  199. 17053.95.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section provides a California film tax credit to qualified taxpayers, subject to detailed eligibility, allocation, certification, and reporting rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.95. (a) (1) For taxable years beginning on or after January 1, 2016, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, subject to a computation and ranking by the California Film Commission in subdivision (g) and the allocation amount categories described in subdivision (i), in an amount equal to 20 percent or 25 percent, whichever is the applicable credit percentage described in paragraph (4), of the qualified expenditures for the production of a qualified motion picture in California. A credit shall not be allowed under this section for any qualified expenditures for the production of a motion picture in California if a credit has been claimed for those same expenditures under Section 17053.85. (2) Except as otherwise provided in this section, the credit shall be allowed for the taxable year in which the California Film Commission issues the credit certificate pursuant to subdivision (g) for the qualified motion picture, but in no instance prior to July 1, 2016, and shall be for the applicable percentage of all qualified expenditures paid or incurred by the qualified taxpayer in all taxable years for that qualified motion picture. (3) The amount of the credit allowed to a qualified taxpayer shall be limited to the amount specified in the credit certificate issued to the qualified taxpayer by the California Film Commission pursuant to subdivision (g). (4) For purposes of paragraphs (1) and (2), the applicable credit percentage shall be: (A) Twenty percent of the qualified expenditures attributable to the production of a qualified motion picture in California, including, but not limited to, a feature, up to one hundred million dollars ($100,000,000) in qualified expenditures, or a television series that relocated to California that is in its second or subsequent years of receiving a tax credit allocation pursuant to this section or Section 17053.85. (B) Twenty-five percent of the qualified expenditures attributable to the production of a qualified motion picture in California where the qualified motion picture is a television series that relocated to California in its first year of receiving a tax credit allocation pursuant to this section. (C) Twenty-five percent of the qualified expenditures, up to ten million dollars ($10,000,000), attributable to the production of a qualified motion picture that is an independent film. (D) Additional credits shall be allowed to a qualified motion picture whose applicable credit percentage is determined pursuant to subparagraph (A), in an aggregate amount not to exceed 5 percent of the qualified expenditures under that subparagraph, as follows: (i) (I) Five percent of qualified expenditures relating to original photography outside the Los Angeles zone. (II) For purposes of this clause: (ia) “Applicable period” means the period that commences with preproduction and ends when original photography concludes. The applicable period includes the time necessary to strike a remote location and return to the Los Angeles zone. (ib) “Los Angeles zone” means the area within a circle 30 miles in radius from Beverly Boulevard and La Cienega Boulevard, Los Angeles, California, and includes Agua Dulce, Castaic, including Lake Castaic, Leo Carrillo State Beach, Ontario International Airport, Piru, and Pomona, including the Los Angeles County Fairgrounds. The Metro Goldwyn Mayer, Inc. Conejo Ranch property is within the Los Angeles zone. (ic) “Original photography” includes principal photography and reshooting original footage. (id) “Qualified expenditures relating to original photography outside the Los Angeles zone” means amounts paid or incurred during the applicable period for tangible personal property purchased or leased and used or consumed outside the Los Angeles zone and relating to original photography outside the Los Angeles zone and qualified wages paid for services performed outside the Los Angeles zone and relating to original photography outside the Los Angeles zone. (ii) Five percent of the qualified expenditures relating to music scoring and music track recording by musicians attributable to the production of a qualified motion picture in California. (iii) Five percent of the qualified expenditures relating to qualified visual effects attributable to the production of a qualified motion picture in California. (b) For purposes of this section: (1) “Ancillary product” means any article for sale to the public that contains a portion of, or any element of, the qualified motion picture. (2) “Budget” means an estimate of all expenses paid or incurred during the production period of a qualified motion picture. It shall be the same budget used by the qualified taxpayer and production company for all qualified motion picture purposes. (3) “Clip use” means a use of any portion of a motion picture, other than the qualified motion picture, used in the qualified motion picture. (4) “Credit certificate” means the certificate issued by the California Film Commission pursuant to subparagraph (C) of paragraph (3) of subdivision (g). (5) (A) “Employee fringe benefits” means the amount allowable as a deduction under this part to the qualified taxpayer involved in the production of the qualified motion picture, exclusive of any amounts contributed by employees, for any year during the production period with respect to any of the following: (i) Employer contributions under any pension, profit-sharing, annuity, or similar plan. (ii) Employer-provided coverage under any accident or health plan for employees. (iii) The employer’s cost of life or disability insurance provided to employees. (B) Any amount treated as wages under clause (i) of subparagraph (A) of paragraph (21) shall not be taken into account under this paragraph. (6) “Independent film” means a motion picture with a minimum budget of one million dollars ($1,000,000) that is produced by a company that is not publicly traded and publicly traded companies do not own, directly or indirectly, more than 25 percent of the producing company. (7) “Jobs ratio” means the amount of qualified wages paid to qualified individuals divided by the amount of tax credit, not including any additional credit allowed pursuant to subparagraph (D) of paragraph (4) of subdivision (a), as computed by the California Film Commission. (8) “Licensing” means any grant of rights to distribute the qualified motion picture, in whole or in part. (9) “New use” means any use of a motion picture in a medium other than the medium for which it was initially created. (10) “Pilot for a new television series” means the initial episode produced for a proposed television series. (11) (A) “Postproduction” means the final activities in a qualified motion picture’s production, including editing, foley recording, automatic dialogue replacement, sound editing, scoring, music track recording by musicians and music editing, beginning and end credits, negative cutting, negative processing and duplication, the addition of sound and visual effects, sound mixing, film-to-tape transfers, encoding, and color correction. (B) “Postproduction” does not include the manufacture or shipping of release prints or their equivalent. (12) “Preproduction” means the process of preparation for actual physical production which begins after a qualified motion picture has received a firm agreement of financial commitment, or is greenlit, with, for example, the establishment of a dedicated production office, the hiring of key crew members, and includes, but is not limited to, activities that include location scouting and execution of contracts with vendors of equipment and stage space. (13) “Principal photography” means the phase of production during which the motion picture is actually shot, as distinguished from preproduction and postproduction. (14) “Production period” means the period beginning with preproduction and ending upon completion of postproduction. (15) “Qualified entity” means a personal service corporation as defined in Section 269A(b)(1) of the Internal Revenue Code, a payroll services corporation, or any entity receiving qualified wages with respect to services performed by a qualified individual. (16) “Qualified expenditures” means amounts paid or incurred for tangible personal property purchased or leased, and used, within this state in the production of a qualified motion picture and payments, including qualified wages, for services performed within this state in the production of a qualified motion picture. (17) (A) “Qualified individual” means any individual who performs services during the production period in an activity related to the production of a qualified motion picture. (B) “Qualified individual” shall not include either of the following: (i) Any individual related to the qualified taxpayer as described in subparagraph (A), (B), or (C) of Section 51(i)(1) of the Internal Revenue Code. (ii) Any 5-percent owner, as defined in Section 416(i)(1)(B) of the Internal Revenue Code, of the qualified taxpayer. (18) (A) “Qualified motion picture” means a motion picture that is produced for distribution to the general public, regardless of medium, that is one of the following: (i) A feature with a minimum production budget of one million dollars ($1,000,000). (ii) A movie of the week or miniseries with a minimum production budget of five hundred thousand dollars ($500,000). (iii) A new television series of episodes longer than 40 minutes each of running time, exclusive of commercials, that is produced in California, with a minimum production budget of one million dollars ($1,000,000) per episode. (iv) An independent film. (v) A television series that relocated to California. (vi) A pilot for a new television series that is longer than 40 minutes of running time, exclusive of commercials, that is produced in California, and with a minimum production budget of one million dollars ($1,000,000). (B) To qualify as a “qualified motion picture,” all of the following conditions shall be satisfied: (i) At least 75 percent of the principal photography days occur wholly in California or 75 percent of the production budget is incurred for payment for services performed within the state and the purchase or rental of property used within the state. (ii) Production of the qualified motion picture is completed within 30 months from the date on which the qualified taxpayer’s application is approved by the California Film Commission. For purposes of this section, a qualified motion picture is “completed” when the process of postproduction has been finished. (iii) The copyright for the motion picture is registered with the United States Copyright Office pursuant to Title 17 of the United States Code. (iv) Principal photography of the qualified motion picture commences after the date on which the application is approved by the California Film Commission, but no later than 180 days after the date of that approval unless death, disability, or disfigurement of the director or of a principal cast member, an act of God, including, but not limited to, fire, flood, earthquake, storm, hurricane, or other natural disaster, terrorist activities, or government sanction has directly prevented a production’s ability to begin principal photography within the prescribed 180-day commencement period. (C) For the purposes of subparagraph (A), in computing the total wages paid or incurred for the production of a qualified motion picture, all amounts paid or incurred by all persons or entities that share in the costs of the qualified motion picture shall be aggregated. (D) “Qualified motion picture” shall not include commercial advertising, music videos, a motion picture produced for private noncommercial use, such as weddings, graduations, or as part of an educational course and made by students, a news program, current events or public events program, talk show, game show, sporting event or activity, awards show, telethon or other production that solicits funds, reality television program, clip-based programming if more than 50 percent of the content is comprised of licensed footage, documentaries, variety programs, daytime dramas, strip shows, one-half hour (air time) episodic television shows, or any production that falls within the recordkeeping requirements of Section 2257 of Title 18 of the United States Code. (19) (A) “Qualified taxpayer” means a taxpayer who has paid or incurred qualified expenditures, participated in the Career Readiness requirement, and has been issued a credit certificate by the California Film Commission pursuant to subdivision (g). (B) In the case of any pass-thru entity, the determination of whether a taxpayer is a qualified taxpayer under this section shall be made at the entity level and any credit under this section is not allowed to the pass-thru entity, but shall be passed through to the partners or shareholders in accordance with applicable provisions of Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). For purposes of this paragraph, “pass-thru entity” means any entity taxed as a partnership or “S” corporation. (20) “Qualified visual effects” means visual effects where at least 75 percent or a minimum of ten million dollars ($10,000,000) of the qualified expenditures for the visual effects is paid or incurred in California. (21) (A) “Qualified wages” means all of the following: (i) Any wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code that were paid or incurred by any taxpayer involved in the production of a qualified motion picture with respect to a qualified individual for services performed on the qualified motion picture production within this state. (ii) The portion of any employee fringe benefits paid or incurred by any taxpayer involved in the production of the qualified motion picture that are properly allocable to qualified wage amounts described in clauses (i), (iii), and (iv). (iii) Any payments made to a qualified entity for services performed in this state by qualified individuals within the meaning of paragraph (17). (iv) Remuneration paid to an independent contractor who is a qualified individual for services performed within this state by that qualified individual. (B) “Qualified wages” shall not include any of the following: (i) Expenses, including wages, related to new use, reuse, clip use, licensing, secondary markets, or residual compensation, or the creation of any ancillary product, including, but not limited to, a soundtrack album, toy, game, trailer, or teaser. (ii) Expenses, including wages, paid or incurred with respect to acquisition, development, turnaround, or any rights thereto. (iii) Expenses, including wages, related to financing, overhead, marketing, promotion, or distribution of a qualified motion picture. (iv) Expenses, including wages, paid per person per qualified motion picture for writers, directors, music directors, music composers, music supervisors, producers, and performers, other than background actors with no scripted lines. (22) “Residual compensation” means supplemental compensation paid at the time that a motion picture is exhibited through new use, reuse, clip use, or in secondary markets, as distinguished from payments made during production. (23) “Reuse” means any use of a qualified motion picture in the same medium for which it was created, following the initial use in that medium. (24) “Secondary markets” means media in which a qualified motion picture is exhibited following the initial media in which it is exhibited. (25) “Television series that relocated to California” means a television series, without regard to episode length or initial media exhibition, with a minimum production budget of one million dollars ($1,000,000) per episode, that filmed its most recent season outside of California or has filmed all seasons outside of California and for which the taxpayer certifies that the credit provided pursuant to this section is the primary reason for relocating to California. (26) “Visual effects” means the creation, alteration, or enhancement of images that cannot be captured on a set or location during live action photography and therefore is accomplished in postproduction. It includes, but is not limited to, matte paintings, animation, set extensions, computer-generated objects, characters and environments, compositing (combining two or more elements in a final image), and wire removals. “Visual effects” does not include fully animated projects, whether created by traditional or digital means. (c) (1) Notwithstanding any other law, a qualified taxpayer may sell any credit allowed under this section that is attributable to an independent film, as defined in paragraph (6) of subdivision (b), to an unrelated party. (2) The qualified taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in the form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit, including the social security or other taxpayer identification number of the unrelated party to whom the credit has been sold, the face amount of the credit sold, and the amount of consideration received by the qualified taxpayer for the sale of the credit. (3) In the case where the credit allowed under this section exceeds the “net tax,” the excess credit may be carried over to reduce the “net tax” in the following taxable year, and succeeding eight taxable years, if necessary, until the credit has been exhausted. (4) A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party. (5) A party that has acquired tax credits under this subdivision shall be subject to the requirements of this section. (6) In no event may a qualified taxpayer assign or sell any tax credit to the extent the tax credit allowed by this section is claimed on any tax return of the qualified taxpayer. (7) In the event that both the taxpayer originally allocated a credit under this section by the California Film Commission and a taxpayer to whom the credit has been sold both claim the same amount of credit on their tax returns, the Franchise Tax Board may disallow the credit of either taxpayer, so long as the statute of limitations upon assessment remains open. (8) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this subdivision. (9) Subdivision (g) of Section 17039 shall not apply to any credit sold pursuant to this subdivision. (10) For purposes of this subdivision, the unrelated party or parties that purchase a credit pursuant to this subdivision shall be treated as a qualified taxpayer pursuant to paragraph (1) of subdivision (a). (d) (1) No credit shall be allowed pursuant to this section unless the qualified taxpayer provides the following to the California Film Commission: (A) Identification of each qualified individual. (B) The specific start and end dates of production. (C) The total wages paid. (D) The total amount of qualified wages paid to qualified individuals. (E) The copyright registration number, as reflected on the certificate of registration issued under the authority of Section 410 of Title 17 of the United States Code, relating to registration of claim and issuance of certificate. The registration number shall be provided on the return claiming the credit. (F) The total amounts paid or incurred to purchase or lease tangible personal property used in the production of a qualified motion picture. (G) Information to substantiate its qualified expenditures. (H) Information required by the California Film Commission under regulations promulgated pursuant to subdivision (g) necessary to verify the amount of credit claimed. (I) Provides documentation verifying completion of the Career Readiness requirement. (2) (A) Based on the information provided in paragraph (1), the California Film Commission shall recompute the jobs ratio previously computed in subdivision (g) and compare this recomputed jobs ratio to the jobs ratio that the qualified taxpayer previously listed on the application submitted pursuant to subdivision (g). (B) (i) If the California Film Commission determines that the jobs ratio has been reduced by more than 10 percent for a qualified motion picture other than an independent film, the California Film Commission shall reduce the amount of credit allowed by an equal percentage, unless the qualified taxpayer demonstrates, and the California Film Commission determines, that reasonable cause exists for the jobs ratio reduction. (ii) If the California Film Commission determines that the jobs ratio has been reduced by more than 20 percent for a qualified motion picture other than an independent film, the California Film Commission shall not accept an application described in subdivision (g) from that qualified taxpayer or any member of the qualified taxpayer’s controlled group for a period of not less than one year from the date of that determination, unless the qualified taxpayer demonstrates, and the California Film Commission determines, that reasonable cause exists for the jobs ratio reduction. (C) If the California Film Commission determines that the jobs ratio has been reduced by more than 30 percent for an independent film, the California Film Commission shall reduce the amount of credit allowed by an equal percentage, plus 10 percent of the amount of credit that would otherwise have been allowed, unless the qualified taxpayer demonstrates, and the California Film Commission determines, that reasonable cause exists for the jobs ratio reduction. (D) For the purposes of this paragraph, “reasonable cause” means unforeseen circumstances beyond the control of the qualified taxpayer, such as, but not limited to, the cancellation of a television series prior to the completion of the scheduled number of episodes or other similar circumstances as determined by the California Film Commission in regulations to be adopted pursuant to subdivision (e). (e) (1) (A) Subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the California Film Commission shall adopt rules and regulations to implement a Career Readiness requirement by which the California Film Commission shall identify training and public service opportunities that may include, but not be limited to, hiring interns, public service announcements, and community outreach and may prescribe rules and regulations to carry out the purposes of this section, including, subparagraph (D) of paragraph (4) of subdivision (a) and clause (iv) of subparagraph (D) of paragraph (2) of subdivision (g), and including any rules and regulations necessary to establish procedures, processes, requirements, application fee structure, and rules identified in or required to implement this section, including credit and logo requirements and credit allocation procedures over multiple fiscal years where the qualified taxpayer is producing a series of features that will be filmed concurrently. (B) Notwithstanding any other law, prior to preparing a notice of proposed action pursuant to Section 11346.4 of the Government Code and prior to making any revision to the proposed regulation other than a change that is nonsubstantial or solely grammatical in nature, the Governor’s Office of Business and Economic Development shall first approve the proposed regulation or proposed change to a proposed regulation regarding allocating the credit pursuant to subdivision (i), computing the jobs ratio as described in subdivisions (d) and (g), and defining “reasonable cause” pursuant to subparagraph (E) of paragraph (2) of subdivision (d). (2) (A) Implementation of this section for the 2015–16 fiscal year is deemed an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare and, therefore, the California Film Commission is hereby authorized to adopt emergency regulations to implement this section during the 2015–16 fiscal year in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (B) Nothing in this paragraph shall be construed to require the Governor’s Office of Business and Economic Development to approve emergency regulations adopted pursuant to this paragraph. (3) The California Film Commission shall not be required to prepare an economic impact analysis pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) with regard to any rules and regulations adopted pursuant to this subdivision. (f) If the qualified taxpayer fails to provide the copyright registration number as required in subparagraph (E) of paragraph (1) of subdivision (d), the credit shall be disallowed and assessed and collected under Section 19051 until the procedures are satisfied. (g) For purposes of this section, the California Film Commission shall do the following: (1) Subject to the requirements of subparagraphs (A) through (E), inclusive, of paragraph (2), on or after July 1, 2015, and before July 1, 2016, in one or more allocation periods per fiscal year, allocate tax credits to applicants. (2) On or after July 1, 2016, and before July 1, 2020, in two or more allocation periods per fiscal year, allocate tax credits to applicants. (A) Establish a procedure for applicants to file with the California Film Commission a written application, on a form jointly prescribed by the California Film Commission and the Franchise Tax Board for the allocation of the tax credit. The application shall include, but not be limited to, the following information: (i) The budget for the motion picture production. (ii) The number of production days. (iii) A financing plan for the production. (iv) The diversity of the workforce employed by the applicant, including, but not limited to, the ethnic and racial makeup of the individuals employed by the applicant during the production of the qualified motion picture, to the extent possible. (v) All members of a combined reporting group, if known at the time of the application. (vi) Financial information, if available, including, but not limited to, the most recently produced balance sheets, annual statements of profits and losses, audited or unaudited financial statements, summary budget projections or results, or the functional equivalent of these documents of a partnership or owner of a single member limited liability company that is disregarded pursuant to Section 23038. The information provided pursuant to this clause shall be confidential and shall not be subject to public disclosure. (vii) The names of all partners in a partnership not publicly traded or the names of all members of a limited liability company classified as a partnership not publicly traded for California income tax purposes that have a financial interest in the applicant’s qualified motion picture. The information provided pursuant to this clause shall be confidential and shall not be subject to public disclosure. (viii) The amount of qualified wages the applicant expects to pay to qualified individuals. (ix) The amount of tax credit the applicant computes the qualified motion picture will receive, applying the applicable credit percentages described in paragraph (4) of subdivision (a). (x) A statement establishing that the tax credit described in this section is a significant factor in the applicant’s choice of location for the qualified motion picture. The statement shall include information about whether the qualified motion picture is at risk of not being filmed or specify the jurisdiction or jurisdictions in which the qualified motion picture will be located in the absence of the tax credit. The statement shall be signed by an officer or executive of the applicant. (xi) Any other information deemed relevant by the California Film Commission or the Franchise Tax Board. (B) Establish criteria, consistent with the requirements of this section, for allocating tax credits. (C) Determine and designate applicants who meet the requirements of this section. (D) (i) For purposes of allocating the credit amounts subject to the categories described in subdivision (i) in any fiscal year, the California Film Commission shall do all of the following: (ii) For each allocation date and for each category, list each applicant from highest to lowest according to the jobs ratio as computed by the California Film Commission. (iii) Subject to the applicable credit percentage, allocate the credit to each applicant according to the highest jobs ratio, working down the list, until the credit amount is exhausted. (iv) Pursuant to regulations adopted pursuant to subdivision (e), the California Film Commission may increase the jobs ratio by up to 25 percent if a qualified motion picture increases economic activity in California according to criteria developed by the California Film Commission that would include, but not be limited to, such factors as, the amount of the production and postproduction spending in California, the utilization of production facilities in California, and other criteria measuring economic impact in California as determined by the California Film Commission. (v) Notwithstanding any other provision, any television series, relocating television series, or any new television series based on a pilot for a new television series that has been approved and issued a credit allocation by the California Film Commission under this section, Section 23695, 17053.85, or 23685 shall be issued a credit for each subsequent year, for the life of that television series whenever credits are allocated within a fiscal year. (E) Subject to the annual cap and the allocation credit amounts based on categories described in subdivision (i), allocate an aggregate amount of credits under this section and Section 23695, and allocate any carryover of unallocated credits from prior years and the amount of any credits reduced pursuant to paragraph (2) of subdivision (d). (3) Certify tax credits allocated to qualified taxpayers. (A) Establish a verification procedure for the amount of qualified expenditures paid or incurred by the applicant, including, but not limited to, updates to the information in subparagraph (A) of paragraph (2) of subdivision (g). (B) Establish audit requirements that must be satisfied before a credit certificate may be issued by the California Film Commission. (C) (i) Establish a procedure for a qualified taxpayer to report to the California Film Commission, prior to the issuance of a credit certificate, the following information: (I) If readily available, a list of the states, provinces, or other jurisdictions in which any member of the applicant’s combined reporting group in the same business unit as the qualified taxpayer that, in the preceding calendar year, has produced a qualified motion picture intended for release in the United States market. For purposes of this clause, “qualified motion picture” shall not include any episodes of a television series that were complete or in production prior to July 1, 2016. (II) Whether a qualified motion picture described in subclause (I) was awarded any financial incentive by the state, province, or other jurisdiction that was predicated on the performance of primary principal photography or postproduction in that location. (ii) The California Film Commission may provide that the report required by this subparagraph be filed in a single report provided on a calendar year basis for those qualified taxpayers that receive multiple credit certificates in a calendar year. (D) Issue a credit certificate to a qualified taxpayer upon completion of the qualified motion picture reflecting the credit amount allocated after qualified expenditures have been verified and the jobs ratio computed under this section. The amount of credit shown in the credit certificate shall not exceed the amount of credit allocated to that qualified taxpayer pursuant to this section. (4) Obtain, when possible, the following information from applicants that do not receive an allocation of credit: (A) Whether the qualified motion picture that was the subject of the application was completed. (B) If completed, in which state or foreign jurisdiction was the primary principal photography completed. (C) Whether the applicant received any financial incentives from the state or foreign jurisdiction to make the qualified motion picture in that location. (5) Provide the Legislative Analyst’s Office, upon request, any or all application materials or any other materials received from, or submitted by, the applicants, in electronic format when available, including, but not limited to, information provided pursuant to clauses (i) to (xi) inclusive, of subparagraph (A) of paragraph (2). (6) The information provided to the California Film Commission pursuant to this section shall constitute confidential tax information for purposes of Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2. (h) (1) The California Film Commission shall annually provide the Legislative Analyst’s Office, the Franchise Tax Board, and the board with a list of qualified taxpayers and the tax credit amounts allocated to each qualified taxpayer by the California Film Commission. The list shall include the names and taxpayer identification numbers, including taxpayer identification numbers of each partner or shareholder, as applicable, of the qualified taxpayer. (2) (A) Notwithstanding paragraph (6) of subdivision (g), the California Film Commission shall annually post on its internet website and make available for public release the following: (i) A table which includes all of the following information: a list of qualified taxpayers and the tax credit amounts allocated to each qualified taxpayer by the California Film Commission, the number of production days in California the qualified taxpayer represented in its application would occur, the number of California jobs that the qualified taxpayer represented in its application would be directly created by the production, and the total amount of qualified expenditures expected to be spent by the production. (ii) A narrative staff summary describing the production of the qualified taxpayer as well as background information regarding the qualified taxpayer contained in the qualified taxpayer’s application for the credit. (B) Nothing in this subdivision shall be construed to make the information submitted by an applicant for a tax credit under this section a public record. (3) The California Film Commission shall provide each city and county in California with an instructional guide that includes, but is not limited to, a review of best practices for facilitating motion picture production in local jurisdictions, resources on hosting and encouraging motion picture production, and the California Film Commissions’ Model Film Ordinance. The California Film Commission shall maintain on its internet website a list of initiatives by locality that encourage motion picture production in regions across the state. The list shall be distributed to each approved applicant for the program to highlight local jurisdictions that offer incentives to facilitate film production. (i) (1) (A) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23695 is the applicable amount described in the following, plus any amount described in subparagraph (B), (C), or (D): (i) Two hundred thirty million dollars ($230,000,000) in credits for the 2015–16 fiscal year. (ii) Three hundred thirty million dollars ($330,000,000) in credits for the 2016–17 fiscal year and each fiscal year thereafter, through and including the 2019–20 fiscal year. (B) The unused allocation credit amount, if any, for the preceding fiscal year. (C) The amount of previously allocated credits not certified. (D) The amount of any credits reduced pursuant to paragraph (2) of subdivision (d). (2) (A) Notwithstanding the foregoing, the California Film Commission shall allocate the credit amounts subject to the following categories: (i) Independent films shall be allocated 5 percent of the amount specified in paragraph (1). (ii) Features shall be allocated 35 percent of the amount specified in paragraph (1). (iii) A relocating television series shall be allocated 20 percent of the amount specified in paragraph (1). (iv) A new television series, pilots for a new television series, movies of the week, miniseries, and recurring television series shall be allocated 40 percent of the amount specified in paragraph (1). (B) Within 60 days after the allocation period, any unused amount within a category or categories shall be first reallocated to the category described in clause (iv) of subparagraph (A) and, if any unused amount remains, reallocated to another category or categories with a higher demand as determined by the California Film Commission. (C) Notwithstanding the foregoing, the California Film Commission may increase or decrease an allocation amount in subparagraph (A) by 5 percent, if necessary, due to the jobs ratio, the number of applications, or the allocation credit amounts available by category compared to demand. (D) With respect to a relocating television series issued a credit in a subsequent year pursuant to clause (v) of subparagraph (D) of paragraph (2) of subdivision (g), that subsequent credit amount shall be allowed from the allocation amount described in clause (iv) of subparagraph (A). (3) Any act that reduces the amount that may be allocated pursuant to paragraph (1) constitutes a change in state taxes for the purpose of increasing revenues within the meaning of Section 3 of Article XIII A of the California Constitution and may be passed by not less than two-thirds of all Members elected to each of the two houses of the Legislature. (j) The California Film Commission shall have the authority to allocate tax credits in accordance with this section and in accordance with any regulations prescribed pursuant to subdivision (e) upon adoption. (Amended by Stats. 2020, Ch. 8, Sec. 7. (AB 85) Effective June 29, 2020.)
  200. 17053.98.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. )

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    This section lets qualified taxpayers claim California film tax credits for eligible motion picture production costs, subject to film-commission allocation, caps, and verification requirements.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10. PERSONAL INCOME TAX [17001 - 18181] ( Part 10 added by Stats. 1943, Ch. 659. ) ## CHAPTER 2. Imposition of Tax [17041 - 17061] ( Chapter 2 repealed and added by Stats. 1955, Ch. 939. ) ## 17053.98. (a) (1) For taxable years beginning on or after January 1, 2020, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, subject to a computation and ranking by the California Film Commission in subdivision (g) and the allocation amount categories described in subdivision (i), in an amount equal to 20 percent or 25 percent, whichever is the applicable credit percentage described in paragraph (4), of the qualified expenditures for the production of a qualified motion picture in California. A credit shall not be allowed under this section for any qualified expenditures for the production of a motion picture in California if a credit has been claimed for those same expenditures under Section 17053.85 or 17053.95. (2) Except as otherwise provided in this section, the credit shall be allowed for the taxable year in which the California Film Commission issues the credit certificate pursuant to subdivision (g) for the qualified motion picture, but in no instance prior to July 1, 2020, and shall be for the applicable percentage of all qualified expenditures paid or incurred by the qualified taxpayer in all taxable years for that qualified motion picture. (3) (A) The amount of the credit allowed to a qualified taxpayer shall be limited to the amount specified in the credit certificate issued to the qualified taxpayer by the California Film Commission pursuant to subdivision (g). (B) In determining the amount specified in the credit certificate in subparagraph (A), the California Film Commission shall be limited to the following amounts of qualified expenditures for each qualified motion picture: (i) (I) In the case of a feature, up to one hundred million dollars ($100,000,000). (II) Notwithstanding subclause (I), for taxable years beginning on or after January 1, 2025, and only for purposes of the credit allowed in subdivision (k), in the case of a feature, up to one hundred twenty million dollars ($120,000,000). (ii) (I) In the case of a miniseries described in clause (ii) of subparagraph (A) of paragraph (18) of subdivision (b), up to one hundred million dollars ($100,000,000). (II) Notwithstanding subclause (I), for taxable years beginning on or after January 1, 2025, and only for purposes of the credit allowed in subdivision (k), in the case of a miniseries described in clause (ii) of subparagraph (A) of paragraph (18) of subdivision (b), up to one hundred twenty million dollars ($120,000,000). (iii) (I) In the case of a television series described in clause (iii) or clause (v) of subparagraph (A) of paragraph (18) of subdivision (b), up to one hundred million dollars ($100,000,000) per season. (II) Notwithstanding subclause (I), for taxable years beginning on or after January 1, 2025, and only for purposes of the credit allowed in subdivision (k), in the case of a television series described in clause (iii) or clause (v) of subparagraph (A) of paragraph (18) of subdivision (b), up to one hundred twenty million dollars ($120,000,000). (iv) In the case of an independent film, up to ten million dollars ($10,000,000). (4) For purposes of paragraphs (1) and (2), the applicable credit percentage shall be: (A) Twenty percent of the qualified expenditures attributable to the production of a qualified motion picture in California, including, but not limited to, a feature or a television series that relocated to California that is in its second or subsequent years of receiving a tax credit allocation pursuant to this section, Section 17053.85, or Section 17053.95. (B) Twenty-five percent of the qualified expenditures attributable to the production of a qualified motion picture in California where the qualified motion picture is a television series that relocated to California in its first year of receiving a tax credit allocation pursuant to this section. (C) Twenty-five percent of the qualified expenditures attributable to the production of a qualified motion picture that is an independent film. (D) Additional credits shall be allowed for the production of a qualified motion picture whose applicable credit percentage is determined pursuant to subparagraph (A), in an aggregate amount not to exceed 5 percent of the qualified expenditures under that subparagraph, as follows: (i) (I) Five percent of qualified expenditures, excluding qualified wages described in subparagraph (E), relating to original photography outside the Los Angeles zone. (II) For purposes of this clause and subparagraph (E): (ia) “Applicable period” means the period that commences with preproduction and ends when original photography concludes. The applicable period includes the time necessary to strike a remote location and return to the Los Angeles zone. (ib) “Los Angeles zone” means the area within a circle 30 miles in radius from Beverly Boulevard and La Cienega Boulevard, Los Angeles, California, and includes Agua Dulce, Castaic, including Castaic Lake, Leo Carrillo State Beach, Ontario International Airport, Piru, and Pomona, including the Los Angeles County Fairgrounds. The Metro-Goldwyn-Mayer, Inc. Conejo Ranch property is within the Los Angeles zone. (ic) “Original photography” includes principal photography and reshooting original footage. (id) “Qualified expenditures relating to original photography outside the Los Angeles zone” means amounts paid or incurred during the applicable period for tangible personal property purchased or leased and used or consumed outside the Los Angeles zone and relating to original photography outside the Los Angeles zone and qualified wages paid for services performed outside the Los Angeles zone and relating to original photography outside the Los Angeles zone. (ii) Five percent of the qualified expenditures relating to qualified visual effects attributable to the production of a qualified motion picture in California. (E) (i) Notwithstanding subparagraph (D), an amount equal to 10 percent of qualified wages paid for services performed relating to original photography outside of the Los Angeles zone to qualified individuals who reside in California but outside the Los Angeles zone shall be allowed as an additional credit for the production of a qualified motion picture whose applicable credit percentage is determined pursuant to subparagraph (A). (ii) Notwithstanding subparagraph (D), an amount equal to 5 percent of qualified wages paid for services performed relating to original photography outside of the Los Angeles zone to qualified individuals who reside in California but outside the Los Angeles zone shall be allowed as an additional credit for the production of a qualified motion picture whose applicable credit percentage is determined pursuant to subparagraph (B) or (C). (b) For purposes of this section: (1) “Ancillary product” means any article for sale to the public that contains a portion of, or any element of, the qualified motion picture. (2) “Budget” means an estimate of all expenses paid or incurred during the production period of a qualified motion picture. It shall be the same budget used by the qualified taxpayer and production company for all qualified motion picture purposes. (3) “Clip use” means a use of any portion of a motion picture, other than the qualified motion picture, used in the qualified motion picture. (4) “Credit certificate” means the certificate issued by the California Film Commission pursuant to subparagraph (D) of paragraph (3) of subdivision (g). (5) (A) “Employee fringe benefits” means the amount allowable as a deduction under this part to the qualified taxpayer involved in the production of the qualified motion picture, exclusive of any amounts contributed by employees, for any year during the production period with respect to any of the following: (i) Employer contributions under any pension, profit-sharing, annuity, or similar plan. (ii) Employer-provided coverage under any accident or health plan for employees. (iii) The employer’s cost of life or disability insurance provided to employees. (B) Any amount treated as wages under clause (i) of subparagraph (A) of paragraph (21) shall not be taken into account under this paragraph. (6) (A) “Independent film” means a motion picture with a minimum budget of one million dollars ($1,000,000) that is produced by a company that is not publicly traded and publicly traded companies do not own, directly or indirectly, more than 25 percent of the producing company. (B) Notwithstanding subparagraph (A), for taxable years beginning on or after January 1, 2025, and only for purposes of the credit allowed in subdivision (k), a motion picture with a minimum budget of one million dollars ($1,000,000) that is produced by a company that is not publicly traded and publicly traded companies do not own, directly or indirectly, more than 30 percent of the producing company. (7) “Jobs ratio” means the amount of qualified wages paid to qualified individuals divided by the amount of tax credit, not including any additional credit allowed pursuant to subparagraphs (D) and (E) of paragraph (4) of subdivision (a), as computed by the California Film Commission. For the purposes of the calculation of the jobs ratio only, 70 percent of qualified expenditures for visual effects paid to third-party vendors for work performed in California shall be deemed to be qualified wages paid to a qualified individual. (8) “Licensing” means any grant of rights to distribute the qualified motion picture, in whole or in part. (9) “New use” means any use of a motion picture in a medium other than the medium for which it was initially created. (10) “Pilot for a new television series” means the initial episode produced for a proposed television series. (11) (A) “Postproduction” means the final activities in a qualified motion picture’s production, including editing, foley recording, automatic dialogue replacement, sound editing, scoring, music track recording by musicians and music editing, beginning and end credits, negative cutting, negative processing and duplication, the addition of sound and visual effects, sound mixing, film-to-tape transfers, encoding, and color correction. (B) “Postproduction” does not include the manufacture or shipping of release prints or their equivalent. (12) “Preproduction” means the process of preparation for actual physical production which begins after a qualified motion picture has received a firm agreement of financial commitment, or is greenlit, with, for example, the establishment of a dedicated production office, the hiring of key crew members, and includes, but is not limited to, activities that include location scouting and execution of contracts with vendors of equipment and stage space. (13) “Principal photography” means the phase of production during which the motion picture is actually shot, as distinguished from preproduction and postproduction. (14) “Production period” means the period beginning with preproduction and ending upon completion of postproduction. (15) “Qualified entity” means a personal service corporation as defined in Section 269A(b)(1) of the Internal Revenue Code, a payroll services corporation, or any entity receiving qualified wages with respect to services performed by a qualified individual. (16) “Qualified expenditures” means amounts paid or incurred for tangible personal property purchased or leased, and used, within this state in the production of a qualified motion picture and payments, including qualified wages, for services performed within this state in the production of a qualified motion picture. (17) (A) “Qualified individual” means any individual who performs services during the production period in an activity related to the production of a qualified motion picture. (B) “Qualified individual” shall not include either of the following: (i) Any individual related to the qualified taxpayer as described in subparagraph (A), (B), or (C) of Section 51(i)(1) of the Internal Revenue Code. (ii) Any 5-percent owner, as defined in Section 416(i)(1)(B) of the Internal Revenue Code, of the qualified taxpayer. (18) (A) “Qualified motion picture” means a motion picture that is produced for distribution to the general public, regardless of medium, that is one of the following: (i) A feature with a minimum production budget of one million dollars ($1,000,000). (ii) A miniseries consisting of two or more episodes, each longer than 40 minutes of running time, exclusive of commercials, that is produced in California, with a minimum production budget of one million dollars ($1,000,000) per episode. (iii) A new television series of episodes longer than 40 minutes each of running time, exclusive of commercials, that is produced in California, with a minimum production budget of one million dollars ($1,000,000) per episode. (iv) An independent film. (v) A television series that relocated to California. (vi) (I) A pilot for a new television series that is longer than 40 minutes of running time, exclusive of commercials, that is produced in California, and with a minimum production budget of one million dollars ($1,000,000). For purposes of the credit allowed in subdivision (k), this subclause shall only apply for taxable years beginning before January 1, 2025. (II) For taxable years beginning on or after January 1, 2025, and only for purposes of the credit allowed in subdivision (k), a pilot for a new live action or animated series that is at least 20 minutes of running time, exclusive of commercials, and is produced in California with a minimum production budget of one million dollars ($1,000,000) per episode. (vii) For taxable years beginning on or after January 1, 2025, and only for purposes of the credit allowed in subdivision (k), a live action or animated series, averaging across a season at least 20 minutes of running time per episode, exclusive of commercials, that is produced in California, with a minimum production budget of one million dollars ($1,000,000) per episode. (viii) For taxable years beginning on or after January 1, 2025, and only for purposes of the credit allowed in subdivision (k), an animated film that is produced in California, with a minimum production budget of one million dollars ($1,000,000). (ix) For taxable years beginning on or after January 1, 2025, and only for purposes of the credit allowed in subdivision (k), a large-scale competition show, not including traditional reality, game shows, talk shows, or docufollow television programming, that is produced in California, with a minimum production budget of one million dollars ($1,000,000) per episode. (B) To qualify as a “qualified motion picture,” all of the following conditions shall be satisfied: (i) At least 75 percent of the principal photography days occur wholly in California or 75 percent of the production budget is incurred for payment for services performed within the state and the purchase or rental of property used within the state. (ii) Production of the qualified motion picture is completed within 30 months from the date on which the qualified taxpayer’s application is approved by the California Film Commission. For purposes of this section, a qualified motion picture is “completed” when the process of postproduction has been finished. (iii) The copyright for the motion picture is registered with the United States Copyright Office pursuant to Title 17 of the United States Code. (iv) Principal photography of the qualified motion picture commences after the date on which the application is approved by the California Film Commission, but no later than 180 days after the date of that approval if the qualified motion picture has a budget with qualified expenditures of less than one hundred million dollars ($100,000,000), and no later than 240 days after the date of that approval in the case of a qualified motion picture with a budget of qualified expenditures with at least one hundred million dollars ($100,000,000), unless death, disability, or disfigurement of the director or of a principal cast member; an act of God, including, but not limited to, fire, flood, earthquake, storm, hurricane, or other natural disaster; terrorist activities; or government sanction has directly prevented a production’s ability to begin principal photography within the prescribed 180- or 240-day commencement period. (C) For the purposes of subparagraph (A), in computing the total wages paid or incurred for the production of a qualified motion picture, all amounts paid or incurred by all persons or entities that share in the costs of the qualified motion picture shall be aggregated. (D) “Qualified motion picture” shall not include commercial advertising, music videos, a motion picture produced for private noncommercial use, such as weddings, graduations, or as part of an educational course and made by students, a news program, current events or public events program, talk show, game show, sporting event or activity, awards show, telethon or other production that solicits funds, reality television program, except as specified in clause (ix) of subparagraph (A), clip-based programming if more than 50 percent of the content is comprised of licensed footage, documentaries, variety programs, daytime dramas, strip shows, one-half hour (air time) episodic television shows, except as specified in clause (vii) of subparagraph (A), or any production that falls within the recordkeeping requirements of Section 2257 of Title 18 of the United States Code. (19) (A) “Qualified taxpayer” means a taxpayer, or a single member limited liability company that is disregarded for tax purposes pursuant to Section 23038, who has paid or incurred qualified expenditures, participated in the Career Readiness requirement in Section 17053.95, and has been issued a credit certificate by the California Film Commission pursuant to subdivision (g). (B) In the case of any pass-thru entity, the determination of whether a taxpayer is a qualified taxpayer under this section shall be made at the entity level and any credit under this section is not allowed to the pass-thru entity but shall be passed through to the partners or shareholders in accordance with applicable provisions of Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). For purposes of this paragraph, “pass-thru entity” means any entity taxed as a partnership or “S” corporation. (20) “Qualified visual effects” means visual effects where at least 75 percent or a minimum of ten million dollars ($10,000,000) of the qualified expenditures for the visual effects are paid or incurred in California. (21) (A) “Qualified wages” means all of the following: (i) Any wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code that were paid or incurred by any taxpayer involved in the production of a qualified motion picture with respect to a qualified individual for services performed on the qualified motion picture production within this state. (ii) The portion of any employee fringe benefits paid or incurred by any taxpayer involved in the production of the qualified motion picture that are properly allocable to qualified wage amounts described in clauses (i), (iii), and (iv). (iii) Any payments made to a qualified entity for services performed in this state by qualified individuals within the meaning of paragraph (17). (iv) Remuneration paid to an independent contractor who is a qualified individual for services performed within this state by that qualified individual. (B) “Qualified wages” shall not include any of the following: (i) Expenses, including wages, related to new use, reuse, clip use, licensing, secondary markets, or residual compensation, or the creation of any ancillary product, including, but not limited to, a soundtrack album, toy, game, trailer, or teaser. (ii) Expenses, including wages, paid or incurred with respect to acquisition, development, turnaround, or any rights thereto. (iii) Expenses, including wages, related to financing, overhead, marketing, promotion, or distribution of a qualified motion picture. (iv) Expenses, including wages, paid per person per qualified motion picture for writers, directors, music directors, music composers, music supervisors, producers, and performers, other than background actors with no scripted lines. (22) “Recurring television series” means any television series that was previously approved and issued a credit allocation letter under this section. (23) “Residual compensation” means supplemental compensation paid at the time that a motion picture is exhibited through new use, reuse, clip use, or in secondary markets, as distinguished from payments made during production. (24) “Reuse” means any use of a qualified motion picture in the same medium for which it was created, following the initial use in that medium. (25) “Secondary markets” means media in which a qualified motion picture is exhibited following the initial media in which it is exhibited. (26) “Television series that relocated to California” means a television series, without regard to episode length or initial media exhibition, with a minimum production budget of one million dollars ($1,000,000) per episode, that filmed at least 75 percent of principal photography days in its most recent season outside of California or has filmed all seasons outside of California and for which the taxpayer certifies that the credit provided pursuant to this section is the primary reason for relocating to California. (27) “Visual effects” means the creation, alteration, or enhancement of images that cannot be captured on a set or location during live action photography and therefore is accomplished in postproduction. It includes, but is not limited to, matte paintings, animation, set extensions, computer-generated objects, characters and environments, compositing (combining two or more elements in a final image), and wire removals. “Visual effects” does not include fully animated projects, whether created by traditional or digital means. (c) (1) Notwithstanding any other law, a qualified taxpayer may sell any credit allowed under this section that is attributable to an independent film, as defined in paragraph (6) of subdivision (b), to an unrelated party. (2) The qualified taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in the form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit, including the social security or other taxpayer identification number of the unrelated party to whom the credit has been sold, the face amount of the credit sold, and the amount of consideration received by the qualified taxpayer for the sale of the credit. (3) In the case where the credit allowed under this section exceeds the “net tax,” the excess credit may be carried over to reduce the “net tax” in the following taxable year, and succeeding eight taxable years, if necessary, until the credit has been exhausted. (4) A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party. (5) A party that has acquired tax credits under this subdivision shall be subject to the requirements of this section. (6) In no event may a qualified taxpayer assign or sell any tax credit to the extent the tax credit allowed by this section is claimed on any tax return of the qualified taxpayer. (7) In the event that both the taxpayer originally allocated a credit under this section by the California Film Commission and a taxpayer to whom the credit has been sold both claim the same amount of credit on their tax returns, the Franchise Tax Board may disallow the credit of either taxpayer, so long as the statute of limitations upon assessment remains open. (8) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this subdivision. (9) Subdivision (g) of Section 17039 shall not apply to any credit sold pursuant to this subdivision. (10) For purposes of this subdivision, the unrelated party or parties that purchase a credit pursuant to this subdivision shall be treated as a qualified taxpayer pursuant to paragraph (1) of subdivision (a). (d) (1) No credit shall be allowed pursuant to this section unless the qualified taxpayer provides the following to the California Film Commission: (A) Identification of each qualified individual. (B) The specific start and end dates of production. (C) The total wages paid. (D) The total amount of qualified wages paid to qualified individuals. (E) Aggregate data for individuals whose wages are excluded from qualified wages by clause (iv) of subparagraph (B) of paragraph (21) of subdivision (b), including their gender, ethnic, and racial makeup. (F) The copyright registration number, as reflected on the certificate of registration issued under the authority of Section 410 of Title 17 of the United States Code, relating to registration of claim and issuance of certificate. The registration number shall be provided on the return claiming the credit. (G) The total amounts paid or incurred to purchase or lease tangible personal property used in the production of a qualified motion picture. (H) Information to substantiate its qualified expenditures. (I) Information required by the California Film Commission under regulations promulgated pursuant to subdivision (g) necessary to verify the amount of credit claimed. (J) Data regarding the diversity of the workforce employed by the applicant on the qualified motion picture, as described in subdivision (g). (K) Documentation verifying completion of the Career Readiness requirement. (L) Documentation verifying that the qualified taxpayer paid a fee as described in subdivision (e). (2) (A) Based on the information provided in paragraph (1), the California Film Commission shall recompute the jobs ratio previously computed in subdivision (g) and compare this recomputed jobs ratio to the jobs ratio that the qualified taxpayer previously listed on the application submitted pursuant to subdivision (g). (B) (i) If the California Film Commission determines that the jobs ratio has been reduced by more than 10 percent for a qualified motion picture, the California Film Commission shall reduce the amount of credit allowed by an equal percentage, unless the qualified taxpayer demonstrates, and the California Film Commission determines, that reasonable cause exists for the jobs ratio reduction. (ii) If the California Film Commission determines that the jobs ratio has been reduced by more than 20 percent for a qualified motion picture, the California Film Commission shall not accept an application described in subdivision (g) from that qualified taxpayer or any member of the qualified taxpayer’s controlled group for a period of not less than one year from the date of that determination, unless the qualified taxpayer demonstrates, and the California Film Commission determines, that reasonable cause exists for the jobs ratio reduction. (C) For the purposes of this paragraph, “reasonable cause” means unforeseen circumstances beyond the control of the qualified taxpayer, such as, but not limited to, the cancellation of a television series prior to the completion of the scheduled number of episodes or other similar circumstances as determined by the California Film Commission in regulations to be adopted pursuant to subdivision (e). (e) (1) (A) Subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the California Film Commission shall adopt rules and regulations to implement a pilot Career Pathways Training program including a fee to be paid by the qualified taxpayer, if the qualified taxpayer receives a credit under this section, to fund technical skills training to individuals from underserved communities for entry into film and television industry jobs. The California Film Commission shall (i) identify a not-for-profit fiscal agent with direct relationships to industry skills training programs to manage the funds; and (ii) engage labor-management jointly administered training programs with skills training focused on the entertainment industry to implement the program with California Film Commission approval and oversight. With regard to the Career Readiness requirement in Section 17053.95, the California Film Commission shall identify training and public service opportunities that may include, but not be limited to, hiring interns, public service announcements, and community outreach shall continue. The California Film Commission may prescribe rules and regulations to carry out the purposes of this section, including, subparagraph (D) of paragraph (4) of subdivision (a) and clause (iv) of subparagraph (D) of paragraph (2) of subdivision (g), and including any rules and regulations necessary to establish procedures, processes, requirements, application fee structure, and rules identified in or required to implement this section, including credit and logo requirements and credit allocation procedures over multiple fiscal years where the qualified taxpayer is producing a series of features that will be filmed concurrently. (B) Notwithstanding any other law, prior to preparing a notice of proposed action pursuant to Section 11346.4 of the Government Code and prior to making any revision to the proposed regulation other than a change that is nonsubstantial or solely grammatical in nature, the Governor’s Office of Business and Economic Development shall first approve the proposed regulation or proposed change to a proposed regulation regarding allocating the credit pursuant to subdivision (i), computing the jobs ratio as described in subdivisions (d) and (g), and defining “reasonable cause” pursuant to subparagraph (C) of paragraph (2) of subdivision (d). (2) (A) Implementation of this section for the 2020–21 fiscal year is deemed an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare and, therefore, the California Film Commission is hereby authorized to adopt emergency regulations to implement this section during the 2020–21 fiscal year in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (B) Nothing in this paragraph shall be construed to require the Governor’s Office of Business and Economic Development to approve emergency regulations adopted pursuant to this paragraph. (3) The California Film Commission shall not be required to prepare an economic impact analysis pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) with regard to any rules and regulations adopted pursuant to this subdivision. (f) If the qualified taxpayer fails to provide the copyright registration number as required in subparagraph (E) of paragraph (1) of subdivision (d), the credit shall be disallowed and assessed and collected under Section 19051 until the procedures are satisfied. (g) For purposes of this section, the California Film Commission shall do the following: (1) Subject to the requirements of subparagraphs (A) to (E), inclusive, of paragraph (2), on or after July 1, 2020, and before July 1, 2025, in two or more allocation periods per fiscal year, allocate tax credits to applicants. (2) (A) Establish a procedure for applicants to file with the California Film Commission a written application, on a form jointly prescribed by the California Film Commission and the Franchise Tax Board for the allocation of the tax credit. The application shall include, but not be limited to, the following information: (i) The budget for the motion picture production. (ii) The number of production days. (iii) A financing plan for the production. (iv) The diversity of the workforce employed by the applicant, including, but not limited to, the ethnic and racial makeup of the individuals employed by the applicant during the production of the qualified motion picture, to the extent possible. (v) All members of a combined reporting group, if known at the time of the application. (vi) The amount of qualified wages the applicant expects to pay to qualified individuals. (vii) The amount of tax credit the applicant computes the qualified motion picture will receive, applying the applicable credit percentages described in paragraph (4) of subdivision (a). (viii) A statement establishing that the tax credit described in this section is a significant factor in the applicant’s choice of location for the qualified motion picture. The statement shall include information about whether the qualified motion picture is at risk of not being filmed or specify the jurisdiction or jurisdictions in which the qualified motion picture will be located in the absence of the tax credit. The statement shall be signed by an officer or executive of the applicant. (ix) The applicant’s written policy against unlawful harassment, including, but not limited to, sexual harassment, which includes procedures for reporting and investigating harassment claims, a phone number for an individual who will be responsible for receiving harassment claims, and a statement that the company will not retaliate against an individual who reports harassment. The applicant shall also indicate how the policy will be distributed to employees and include a summary of education training resources, including the prohibition against, and prevention and correction of, sexual harassment and remedies available. (x) The ethnic and racial makeup and gender of individuals whose wages are excluded from qualified wages as set forth in clause (iv) of subparagraph (B) of paragraph (21) of subdivision (b). (xi) A summary of the applicant’s voluntary programs to increase the representation of minorities and women in the job classifications that are not included in qualified wages as set forth in clause (iv) of subparagraph (B) of paragraph (21) of subdivision (b) and information about how these programs are publicized to interested parties. The officer or executive referenced in clause (x) who is signing the statement shall provide additional information about these programs, if needed and upon request, to the California Film Commission. (xii) Any other information deemed relevant by the California Film Commission or the Franchise Tax Board. (B) Establish criteria, consistent with the requirements of this section, for allocating tax credits. (C) Determine and designate applicants who meet the requirements of this section. (D) (i) For purposes of allocating the credit amounts subject to the categories described in subdivision (i) in any fiscal year, the California Film Commission shall do all of the following: (ii) For each allocation date and for each category, list each applicant from highest to lowest according to the jobs ratio as computed by the California Film Commission. (iii) Subject to the applicable credit percentage, allocate the credit to each applicant according to the highest jobs ratio, working down the list, until the credit amount is exhausted. (iv) (I) Pursuant to regulations adopted pursuant to subdivision (e), the California Film Commission may increase the jobs ratio by up to 25 percent if a qualified motion picture increases economic activity in California according to criteria developed by the California Film Commission that would include, but not be limited to, such factors as, the amount of the production and postproduction spending in California, the utilization of scoring musicians in California, and other criteria measuring economic impact in California as determined by the California Film Commission. (II) For qualified motion pictures that are described in subparagraph (D) of paragraph (8) of subdivision (k), the jobs ratio shall be equal to the product of the jobs ratio calculated in paragraph (7) of subdivision (b) and 133 percent. (v) Notwithstanding any other law, any television series, relocating television series, or any new television series based on a pilot for a new television series that has been approved and issued a credit allocation by the California Film Commission under this section, including subdivision (k), Section 23698, including subdivision (k), or Section 17053.95, 23695, 17053.85, or 23685 shall be issued a credit for each subsequent season, for the life of that television series whenever credits are allocated within a fiscal year. For taxable years beginning before January 1, 2025, the California Film Commission shall limit the amount of credits any recurring television series receives in a subsequent season to no more than the amount reserved in its prior fiscal year Credit Allocation Letter or Letters, or if no amounts were reserved in the prior fiscal year, the most immediate prior fiscal year in which a Credit Allocation Letter or Letters were received. For taxable years beginning on or after January 1, 2025, the California Film Commission shall limit the amount of credits any recurring television series receives in a subsequent season to no more than the recurring television allocation amount, as defined in paragraph (23) of subdivision (b) of Section 17053.98.1. In the event that insufficient tax credits are available to fund all recurring television series pursuant to this clause for any fiscal year or in the event the California Film Commission projects, in collaboration with the Department of Finance, that there will be insufficient tax credits available to fund all recurring television series in either of the subsequent two fiscal years, the California Film Commission shall make the following adjustments in the order given until the shortfall, or any projected shortfall for the two subsequent fiscal years, for recurring television series is eliminated: (I) Notwithstanding clause (iii) of subparagraph (A) of paragraph (2) of subdivision (i), the California Film Commission may redirect up to 100 percent of the credit amounts allocated to the relocating television series category to recurring television series for that fiscal year until the shortfall or projected shortfall is eliminated. (II) Notwithstanding clause (iv) of subparagraph (A) of paragraph (2) of subdivision (i), the California Film Commission may redirect up to 100 percent of the credit amounts allocated to a new television series to recurring television series for that fiscal year until the shortfall or projected shortfall is eliminated. (III) Notwithstanding clause (ii) of subparagraph (A) of paragraph (2) of subdivision (i), the California Film Commission may redirect up to 100 percent of the credit allocations from the features category to the recurring television series category for that fiscal year until the shortfall is eliminated. (IV) Allocate up to 25 percent of total credit allocations that would otherwise be allocated in the 2024–25 fiscal year to recurring television series in the current fiscal year until the shortfall is eliminated. Any amounts transferred for allocation in the current fiscal year shall be subtracted from the amount allowed to be allocated in the 2024–25 fiscal year as specified in subdivision (i). Notwithstanding paragraph (3), the credit allocations that are subtracted from 2024–25 shall not be certified until July 1, 2025, or later. (V) The California Film Commission shall consult with the qualified taxpayers who are producing the recurring television series for purposes of negotiating a minimally impactful reduction in the amount of credits awarded to each recurring television series for that fiscal year until the shortfall is eliminated. (E) Subject to the annual cap and the allocation credit amounts based on categories described in subdivision (i), allocate an aggregate amount of credits under this section and Section 23698, and allocate any carryover of unallocated or unused credits from prior years and Sections 17053.85, 17053.95, 23685, and 23695, and the amount of any credits reduced pursuant to paragraph (2) of subdivision (d). (3) Certify tax credits allocated to qualified taxpayers. (A) Establish a verification procedure to update the information in subparagraph (A) of paragraph (2) of subdivision (g), including, but not limited to, all of the following: (i) The amounts of qualified expenditures paid or incurred by the applicant. (ii) The diversity of the workforce employed by the applicant. (iii) The ethnic and racial makeup and gender of individuals whose wages are excluded from qualified wages by clause (iv) of subparagraph (B) of paragraph (21) of subdivision (b). (B) Establish audit requirements that shall be satisfied before a credit certificate may be issued by the California Film Commission. (C) (i) Establish a procedure for a qualified taxpayer to report to the California Film Commission, prior to the issuance of a credit certificate, the following information: (I) If readily available, a list of the states, provinces, or other jurisdictions in which any member of the applicant’s combined reporting group in the same business unit as the qualified taxpayer that, in the preceding calendar year, has produced a qualified motion picture intended for release in the United States market. For purposes of this clause, “qualified motion picture” shall not include any episodes of a television series that were complete or in production prior to July 1, 2020. (II) Whether a qualified motion picture described in subclause (I) was awarded any financial incentive by the state, province, or other jurisdiction that was predicated on the performance of primary principal photography or postproduction in that location. (ii) The California Film Commission may provide that the report required by this subparagraph be filed in a single report provided on a calendar year basis for those qualified taxpayers that receive multiple credit certificates in a calendar year. (D) Issue a credit certificate to a qualified taxpayer upon completion of the qualified motion picture reflecting the credit amount allocated after qualified expenditures have been verified and the jobs ratio computed under this section. The amount of credit shown on the credit certificate shall not exceed the amount of credit allocated to that qualified taxpayer pursuant to this section. (4) Obtain, when possible, the following information from applicants that do not receive an allocation of credit: (A) Whether the qualified motion picture that was the subject of the application was completed. (B) If completed, in which state or foreign jurisdiction was the primary principal photography completed. (C) Whether the applicant received any financial incentives from the state or foreign jurisdiction to make the qualified motion picture in that location. (5) Provide the Legislative Analyst’s Office, upon request, any or all application materials or any other materials received from, or submitted by, applicants for which a credit allocation decision has been made, including, but not limited to, applicants that did not receive a credit allocation. Materials provided to the Legislative Analyst’s Office shall be in electronic format when available and include, but not be limited to, information provided pursuant to clauses (i) to (xii), inclusive, of subparagraph (A) of paragraph (2) and the diversity workplans provided pursuant to clause (iv) of subparagraph (B) of paragraph (2) of subdivision (k). (6) The information provided to the California Film Commission pursuant to this section shall constitute confidential tax information for purposes of Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2. (7) (A) Notwithstanding any other law, on or after July 1, 2025, the California Film Commission may allocate, pursuant to this section, any previously allocated credits not certified that have not previously been added to credit amounts available for allocation under this section or a successor section or sections. (B) For purposes of this section, “previously allocated credits not certified” means either: (i) Credits allocated under paragraph (1) for which the qualified taxpayer to which the credit amounts were originally allocated has notified the California Film Commission in writing that the qualified taxpayer will not request certification for the allocated credits. (ii) The difference between the amount of credits allocated under paragraph (1) to a qualified taxpayer and the amount of credits the California Film Commission certified, for that qualified taxpayer. For purposes of calculating the difference, the California Film Commission shall not consider any credit amounts for which the qualified taxpayer notifies the California Film Commission under clause (i). (8) Notwithstanding any other law, on or after July 1, 2025, the California Film Commission may allocate, pursuant to this section, any credit amounts described in subparagraphs (B) and (E) of paragraph (1) of subdivision (i) that have not previously been added to credit amounts available for allocation under this section or a successor section or sections. (9) The California Film Commission shall submit a report to the Legislature, on an annual basis beginning January 1, 2022, on aggregate diversity information for the productions allocated tax credits allowed in this section and the diversity of the motion picture production industry in California more generally. (h) (1) The California Film Commission shall annually provide the Legislative Analyst’s Office, the Franchise Tax Board, and the California Department of Tax and Fee Administration with a list of qualified taxpayers and the tax credit amounts allocated to each qualified taxpayer by the California Film Commission. The list shall include the names and taxpayer identification numbers, including taxpayer identification numbers of each partner or shareholder, as applicable, of the qualified taxpayer. (2) (A) Notwithstanding paragraph (6) of subdivision (g), the California Film Commission shall annually post on its internet website and make available for public release the following: (i) A table which includes all of the following information: a list of qualified taxpayers and the tax credit amounts allocated to each qualified taxpayer by the California Film Commission, the number of production days in California the qualified taxpayer represented in its application would occur, the number of California jobs that the qualified taxpayer represented in its application would be directly created by the production, and the total amount of qualified expenditures expected to be spent by the production. (ii) A narrative staff summary describing the production of the qualified taxpayer as well as background information regarding the qualified taxpayer contained in the qualified taxpayer’s application for the credit. (iii) For qualified taxpayers allocated a credit, the aggregate diversity information collected pursuant to clauses (iv) and (xii) of subparagraph (A) of paragraph (2) of subdivision (g) organized per production and an aggregate compilation describing the voluntary programs collected pursuant to clause (xiii) of subparagraph (A) of paragraph (2) of subdivision (g). (B) Nothing in this subdivision shall be construed to make the information submitted by an applicant for a tax credit under this section a public record, including for the purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). (3) The California Film Commission shall provide each city and county in California with an instructional guide that includes, but is not limited to, a review of best practices for facilitating motion picture production in local jurisdictions, resources on hosting and encouraging motion picture production, and the California Film Commission’s Model Filming Ordinance. The California Film Commission shall maintain on its internet website a list of initiatives by locality that encourage motion picture production in regions across the state. The list shall be distributed to each approved applicant for the program to highlight local jurisdictions that offer incentives to facilitate film production. (i) (1) (A) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23698, except as provided in subdivision (k) of this section and subdivision (k) of Section 23698, is three hundred thirty million dollars ($330,000,000), plus any amount described in subparagraph (B), (C), (D), or (E) in credits for the 2020–21 fiscal year and each fiscal year thereafter, through and including the 2024–25 fiscal year, except as provided in paragraph (7) of subdivision (g), plus the amount described in subparagraph (F) in credits for the 2021–22 and 2022–23 fiscal years. (B) (i) Subject to clauses (ii) and (iii), the unused allocation credit amount, if any, for the preceding fiscal year. (ii) The amount of unused credit allocation attributable to independent films shall only be allocated according to clause (i) of subparagraph (A) of paragraph (2). (iii) The total amount of any unused credit allocation amount that is remaining shall only be allocated pursuant to clause (iv) of subparagraph (A) of paragraph (2). (C) The amount of previously allocated credits not certified. (D) The amount of any credits reduced pursuant to paragraph (2) of subdivision (d). (E) That portion of any unused allocation credit amount, if any, attributable to Section 17053.85, 17053.95, 23685, or 23695 available for that fiscal year in a manner as determined by regulations promulgated by the California Film Commission. (F) (i) For fiscal years 2021–22 and 2022–23, the California Film Commission shall allocate an additional fifteen million dollars ($15,000,000) in credits to be granted exclusively to television series that relocate to California. (I) Notwithstanding subparagraph (A) of paragraph (2) of this subdivision and clause (v) of subparagraph (D) of paragraph (2) of subdivision (g), the moneys allocated pursuant to this subparagraph shall not be redirected or reallocated. (II) Notwithstanding paragraph (25) of subdivision (b), for purposes of this subparagraph, a “television series that relocated to California” means a television series, without regard to episode length or initial media exhibition, with a minimum production budget of one million dollars ($1,000,000) per episode that both filmed at least 75 percent of principal photography days for at least one episode outside of California and has not filmed more than 25 percent of principal photography days for any episode inside of California. (ii) For fiscal years 2021–22 and 2022–23, the California Film Commission shall allocate an additional seventy-five million dollars ($75,000,000) in credits to be granted exclusively to recurring television series. (2) (A) Notwithstanding the foregoing, and subject to paragraph (4) of this subdivision and changes in allocations pursuant to clause (v) of subparagraph (D) of paragraph (2) of subdivision (g), the California Film Commission shall allocate the credit amounts subject to the following categories: (i) Independent films with qualified expenditures of ten million dollars ($10,000,000) or less shall be allocated 4.8 percent of the amount specified in paragraph (1). Independent films with qualified expenditures in excess of ten million dollars ($10,000,000) shall be allocated 3.2 percent of the amount specified in paragraph (1). These amounts shall be in addition to any unused allocation credit amount, if any, for the preceding fiscal year as described in subparagraph (B) of paragraph (1). (ii) Features shall be allocated 35 percent of the amount specified in paragraph (1). (iii) A relocating television series shall be allocated 17 percent of the amount specified in paragraph (1). (iv) A new television series, pilots for a new television series, miniseries, and recurring television series shall be allocated 40 percent of the amount specified in paragraph (1), plus any unused allocation credit amount, if any, for the preceding fiscal year as described in subparagraph (B) of paragraph (1). (B) Within any allocation period for credits to a relocating television series, any unused amount shall be reallocated to the category described in clause (iv) of subparagraph (A) and, if any unused amount remains, reallocated in the next allocation period for credits to a relocating television series. (C) With respect to a relocating television series issued a credit in a subsequent year pursuant to clause (v) of subparagraph (D) of paragraph (2) of subdivision (g), that subsequent credit amount shall be allowed from the allocation amount described in clause (iv) of subparagraph (A). (3) Any act that reduces the amount that may be allocated pursuant to paragraph (1) constitutes a change in state taxes for the purpose of increasing revenues within the meaning of Section 3 of Article XIII A of the California Constitution and may be passed by not less than two-thirds of all Members elected to each of the two houses of the Legislature. (4) A qualified motion picture, as defined in subdivision (k), shall not be eligible for an allocation under subdivisions (a) to (j), inclusive, if it receives a credit under subdivision (k) during that fiscal year. (j) The California Film Commission shall have the authority to allocate tax credits in accordance with this section and in accordance with any regulations prescribed pursuant to subdivision (e) upon adoption. (k) (1) For taxable years beginning on or after January 1, 2022, and before January 1, 2032, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, subject to allocation by the California Film Commission, in an amount equal to: (A) For credits allocated before July 1, 2025, 20 percent or 25 percent, whichever is the applicable credit percentage described in paragraph (4) of subdivision (a), as modified by paragraph (3) of this subdivision, of the qualified expenditures for the production of a qualified motion picture produced in the state at a certified studio construction project. (B) For credits allocated on or after July 1, 2025, 35 percent or 40 percent, whichever is the applicable credit percentage described in paragraph (4) of subdivision (a) of Section 17053.98.1, as modified by paragraph (3) of this subdivision, of the qualified expenditures for the production of a qualified motion picture produced in the state at a certified studio construction project. (2) For purposes of this subdivision, the definitions in subdivision (b) shall apply except as otherwise provided in this subdivision. (A) “Certified studio construction project” means a construction or renovation project certified for a period of five years by the California Film Commission as having met all of the following criteria: (i) The project provides for the construction or renovation of one or more soundstages located in the state. (ii) Actual construction or renovation expenditures are not less than twenty-five million dollars ($25,000,000) of actual construction or renovation expenditures made over not more than five continuous calendar years. (iii) The construction or renovation of each certified studio construction project is performed in accordance with Section 17053.99. (iv) The construction or renovation of each certified studio construction project commences pursuant to a foundation permit or a structural building permit for the construction or renovation that is issued after the effective date of the act adopting this subdivision. (v) The certified studio construction project applicant or its affiliates shall not have received a California Competes Grant under Section 12096.6 of the Government Code for wages or investment related to construction of the studio construction project. (B) “Qualified motion picture” means a qualified motion picture, as defined in subdivision (b), that meets all of the following requirements: (i) During the production period, the qualified motion picture films at least 50 percent of its principal photography stage shooting days on a soundstage or soundstages certified as a certified studio construction project. (ii) During the production period, the qualified motion picture pays or incurs at least five million dollars ($5,000,000) in qualified wages for filming on a soundstage or soundstages certified as a certified studio construction project. (iii) For taxable years beginning before January 1, 2025, is produced by a qualified taxpayer that is either of the following: (I) More than 50 percent owned, directly or indirectly, by the same owner or owners of the soundstage or soundstages that is part of a certified studio construction project on which the production is filmed. (II) Entered into a contract or lease of 10 years or more with the owner or owners of a certified studio construction project on which the production is filmed. (iv) Provides a diversity workplan that is approved by the California Film Commission. (C) For purposes of this subdivision, a qualified taxpayer and a taxpayer include a passthrough entity and a disregarded entity. (3) (A) The diversity workplan required pursuant to clause (iv) of subparagraph (B) of paragraph (2) shall include all of the following: (i) A statement of the diversity goals the motion picture will seek to achieve in terms of qualified wages paid by race, ethnicity, gender, disability status, and for taxable years beginning on or after January 1, 2025, veteran status. (ii) A statement of the diversity goals the motion picture will seek to achieve for individuals whose wages are excluded from qualified wages as set forth in clause (iv) of subparagraph (B) of paragraph (21) of subdivision (b), with respect to both compensation and to the representation of diversity in the creative aspects of the motion picture. (iii) A plan of what strategies the motion picture will employ to achieve the goals in clauses (i) and (ii). (B) The diversity workplan shall include goals that are broadly reflective of California’s population, in terms of race, ethnicity, gender, disability status, and for taxable years beginning on or after January 1, 2025, veteran status. For taxable years beginning on or after January 1, 2025, the diversity workplan shall indicate the ZIP Code for those members of the workforce whose wages are qualified expenditures and those whose wages are not qualified expenditures. (C) The California Film Commission shall approve or reject the diversity workplan of an applicant, to the extent allowed by federal and state law. (D) (i) The California Film Commission shall not certify any tax credit under this subdivision until they have received a final diversity report from the qualified motion picture applicant. (ii) The final diversity report shall calculate and provide evidence for the extent to which the applicant met the diversity goals laid out in their diversity workplan. (iii) The California Film Commission shall have the authority to audit the final diversity report to determine if the diversity goals set forth in the applicant’s diversity workplan for the motion picture production were achieved. (iv) If the California Film Commission determines that the qualified motion picture applicant has met or made a good faith effort to meet the diversity goals in its diversity workplan, the applicant’s credit percentage described in paragraph (1) shall be increased by up to four percentage points as follows: (I) By two percentage points if the California Film Commission determines that the applicant has met or made a good faith effort to meet the diversity goals with respect to the diversity of the workforce employed by the applicant in its diversity workplan statement. (II) By two percentage points if the California Film Commission determines that the applicant has met or made a good faith effort to meet the diversity goals with respect to individuals whose wages are excluded from qualified wages as set forth in clause (iv) of subparagraph (B) of paragraph (21) of subdivision (b), in its diversity workplan statement. (E) The California Film Commission, in consultation with the Governor’s Office of Business and Economic Development, shall establish guidelines to evaluate diversity workplans as described in this paragraph. The guidelines shall be posted on the California Film Commission’s internet website. (4) The credit allowed under this subdivision shall be administered in accordance with subdivisions (a), (b), (c), (d), (h), and (l), except that paragraph (1) of subdivision (a) shall not apply, paragraph (7) of subdivision (b) shall not apply, and paragraph (2) of subdivision (d) shall not apply. (5) Subparagraph (A) of paragraph (2), subparagraphs (A), (B), and (C) of paragraph (3), and paragraphs (4), (5), and (6) of subdivision (g) shall apply. (6) A conflict between this subdivision and any other subdivisions in this section shall be reconciled in favor of this subdivision. (7) The aggregate amount of credit allocated by the California Film Commission pursuant to subdivisions (a) to (j), inclusive, of this section and Section 23698 shall not be reduced by the tax credit allowed pursuant to this subdivision. The amount of credit allowed by this subdivision shall not be limited by subdivision (i). (8) (A) The credit allocated pursuant to this subdivision shall be allowed for the taxable year in which the California Film Commission issues a credit certificate in accordance with the procedures provided for in subdivision (g) for the qualified motion picture. The California Film Commission shall issue a credit certificate to a qualified taxpayer upon completion of the qualified motion picture reflecting the credit amount allocated after qualified expenditures have been verified. (B) The California Film Commission, commencing with fiscal year 2021–22, shall allocate tax credits each year to qualified motion pictures meeting the criteria of this subdivision. The total amount of credits that may be allocated under this subdivision is one hundred fifty million dollars ($150,000,000). For taxable years beginning before January 1, 2025, the amount of credit that may be allocated to a qualified motion picture under this subdivision shall not exceed the greater of twelve million dollars ($12,000,000), or seven hundred fifty thousand dollars ($750,000) per episode, for a season of a television series. For taxable years beginning on or after January 1, 2025, the amount of credit that may be allocated to a qualified motion picture under this subdivision shall not exceed the greater of twenty-one million dollars ($21,000,000), or one million three hundred thousand dollars ($1,300,000) per episode, for a season of a television series. Recurring television series receiving an initial allocation under this subdivision shall be allocated for subsequent seasons no more than allowed under this paragraph. (C) In any year the tax credits under this paragraph have been allocated by the California Film Commission, a qualified motion picture or a recurring television series that satisfies the criteria of this subdivision, but have not received an allocation of credits, may apply to receive an allocation of credits pursuant to subdivision (i). (D) A qualified motion picture that satisfies the criteria of this subdivision, other than a recurring television series described in subparagraph (E) of this paragraph, that does not receive a credit allocation under this subdivision because the total amount of credits authorized for the program in subparagraph (B) has been allocated or the qualified motion picture commenced production during the sixth year the certified studio construction project has been certified by the California Film Commission, or any year thereafter, may apply for a credit allocation under subdivisions (a) through (j), inclusive, subject to the jobs ratio enhancement in subclause (II) of clause (iv) of subparagraph (D) of paragraph (2) of subdivision (g). (E) A recurring television series that satisfies the criteria of this subdivision and that is no longer eligible for a credit allocation under this subdivision for a reason described in subparagraph (D) shall receive a credit allocation under subdivisions (a) through (j), inclusive, pursuant to clause (v) of subparagraph (D) of paragraph (2) of subdivision (g). (F) Credits shall be allocated based on the assumption that the motion picture meets the diversity criteria specified in clause (iv) of subparagraph (D) of paragraph (3). (G) If any successor tax credit program that modifies or replaces the program specified in subdivisions (a) through (j), inclusive, of this section or Section 23698 is enacted, both of the following shall apply: (i) A qualified motion picture described in subparagraph (D) may apply to receive an allocation of credits under the successor program. (ii) A recurring television series described in subparagraph (E) shall receive an allocation of credits under the successor program. (9) A qualified motion picture meeting the requirements of this subdivision that receives a credit allocation during the five-year period the certified studio construction project is certified by the California Film Commission shall be allowed a credit under this subdivision for subsequent seasons for the life of that recurring television series as long as the qualified motion picture continues to satisfy the criteria of this subdivision and to the extent the total credit amount the California Film Commission is permitted to allocate pursuant to subparagraph (B) of paragraph (8) has not previously been allocated. (10) Within six months of the effective date of this subdivision, the California Film Commission shall: (A) Establish procedures to certify a certified studio construction project. (B) Establish procedures to verify a qualified motion picture has met the criteria established in this section for filming in a certified studio construction project facility. That procedure shall include a requirement that the qualified motion picture pay 0.5 percent of the approved credit amount to the Career Pathways Training program specified in subdivision (e). (C) (i) Implementation of this subdivision for the 2023–24 fiscal year is deemed an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare and, therefore, the California Film Commission is hereby authorized to adopt emergency regulations to implement this subdivision during the 2023–24 fiscal year in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (ii) The California Film Commission shall adopt regulations in order to implement this paragraph. (iii) The California Film Commission shall not be required to prepare an economic impact analysis pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) with regard to any rules and regulations adopted pursuant to this subdivision. (11) In the case where the credit allowed by this subdivision exceeds the taxpayer’s tax liability computed under this part, the excess credit may be carried over to reduce the “net tax” in the following taxable year, and succeeding eight taxable years, if necessary, until the credit has been exhausted. (12) Upon completion of construction or renovation of the soundstage or soundstages, the certified studio construction project applicant shall certify to the California Film Commission that all contractors and subcontractors performing construction work on the soundstage or soundstages were required to use a skilled and trained workforce to perform such work in accordance with subdivision (b) of Section 17053.99. (13) (A) Upon completion of construction or renovation of the soundstage or soundstages, the soundstage or soundstages shall be continuously operated, maintained, and repaired by any of the following: (i) A workforce that is paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, if such services are performed by a workforce that is employed directly, or indirectly through a motion picture payroll services company, by the owner or affiliate of the owner of the soundstage or lessee of the soundstage described in subclause (II) of clause (iii) of subparagraph (B) of paragraph (2) of this subdivision. (ii) A skilled and trained workforce as defined in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, if such services are provided by third-party vendors. (B) Each year following completion of construction or renovation of the soundstage or soundstages that a qualified motion picture is allocated a tax credit pursuant to this subdivision, the certified studio construction project applicant shall certify to the California Film Commission both of the following: (i) The total amount of payments to third-party vendors or qualified wages for operation, maintenance, and repair of the certified soundstage. (ii) The amount and percentage of the total amount of payments to third-party vendors or qualified wages for operation, maintenance, and repair of the certified soundstage performed by each workforce described in subparagraph (A). (C) If the percentage paid to workers in clause (i) of subparagraph (A) is certified to be 90 percent of the total amount under clause (i) of subparagraph (B) or greater, the qualified taxpayer shall be entitled to 100 percent of the applicable credit issued under this subdivision for the period. If the percentage paid to workers in clause (i) of subparagraph (A) is certified to be less than 90 percent of the total amount under clause (i) of subparagraph (B) but greater than or equal to 75 percent of the total amount under clause (i) of subparagraph (B), the qualified taxpayer shall be entitled to 50 percent of the applicable credit issued under this subdivision for the period. If the percentage paid to workers in clause (i) of subparagraph (A) is certified to be less than 75 percent of the total amount under clause (i) of subparagraph (B), the qualified taxpayer shall not be entitled to any credit issued under this subdivision for the applicable period. (14) (A) Except as provided in subparagraph (B), the changes made to this subdivision by the act adding this paragraph shall apply to taxable years beginning on or after January 1, 2023. (B) The changes made to subparagraphs (A) and (B) of paragraph (2) by the act adding this paragraph shall apply for all taxable years to any certified studio construction project that has been certified, and any qualified motion picture that has been allocated a credit, pursuant to this subdivision. (l) Section 41 shall not apply to the credits allowed by this section. (Amended by Stats. 2025, Ch. 27, Sec. 1. (AB 1138) Effective July 3, 2025.)

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