Amended IN Assembly March 22, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2574Introduced by Assembly Member Low BloomFebruary 15, 2018 An act to amend Section 401 23036 of the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2574, as amended, Low Bloom. Property taxation: assessment: full value. Corporation taxes: research credit: alternative minimum tax.The Corporation Tax Law allows various credits against the taxes imposed by that law, including, in modified conformity with federal law, a credit for qualified research, as provided. Existing law defines tax for these purposes as several different taxes, including the franchise tax and the corporation income tax. The Corporation Tax Law, in modified conformity with federal law, makes a corporation subject to the alternative minimum tax under specified circumstances. This bill, for each taxable year beginning on or after January 1, 2019, would include the alternative minimum tax in the definition of tax for purposes of allowing the credit for qualified research.This bill would take effect immediately as a tax levy.Existing property tax law requires every assessor to assess all property subject to general property taxation at its full value.This bill would make a nonsubstantive change to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 23036 of the Revenue and Taxation Code is amended to read:23036. (a) (1) The term tax includes any of the following:(A) The tax imposed under Chapter 2 (commencing with Section 23101).(B) The tax imposed under Chapter 3 (commencing with Section 23501).(C) The tax on unrelated business taxable income, imposed under Section 23731.(D) The tax on S corporations imposed under Section 23802.(2) The term tax does not include any amount imposed under paragraph (1) of subdivision (e) of Section 24667 or paragraph (2) of subdivision (f) of Section 24667.(b) For purposes of Article 5 (commencing with Section 18661) of Chapter 2, Article 3 (commencing with Section 19031) of Chapter 4, Article 6 (commencing with Section 19101) of Chapter 4, and Chapter 7 (commencing with Section 19501) of Part 10.2, and for purposes of Sections 18601, 19001, and 19005, the term tax also includes all of the following:(1) The tax on limited partnerships, imposed under Section 17935, the tax on limited liability companies, imposed under Section 17941, and the tax on registered limited liability partnerships and foreign limited liability partnerships imposed under Section 17948.(2) The alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400).(3) The tax on built-in gains of S corporations, imposed under Section 23809.(4) The tax on excess passive investment income of S corporations, imposed under Section 23811.(c) For each taxable year beginning on or after January 1, 2019, for purposes of Section 23609, the term tax shall also include the alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400). (c)(d) Notwithstanding any other provision of this part, credits are allowed against the tax in the following order:(1) Credits that do not contain carryover provisions.(2) Credits that, when the credit exceeds the tax, allow the excess to be carried over to offset the tax in succeeding taxable years, except for those credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455. The order of credits within this paragraph shall be determined by the Franchise Tax Board.(3) The minimum tax credit allowed by Section 23453.(4) Credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455.(5) Credits for taxes withheld under Section 18662.(d)(e) Notwithstanding any other provision of this part, each of the following applies:(1) A credit may not reduce the tax below the tentative minimum tax (as defined by paragraph (1) of subdivision (a) of Section 23455), except the following credits:(A) The credit allowed by former Section 23601 (relating to solar energy).(B) The credit allowed by former Section 23601.4 (relating to solar energy).(C) The credit allowed by former Section 23601.5 (relating to solar energy).(D) The credit allowed by Section 23609 (relating to research expenditures).(E) The credit allowed by former Section 23609.5 (relating to clinical testing expenses).(F) The credit allowed by Section 23610.5 (relating to low-income housing).(G) The credit allowed by former Section 23612 (relating to sales and use tax credit).(H) The credit allowed by Section 23612.2 (relating to enterprise zone sales or use tax credit).(I) The credit allowed by former Section 23612.6 (relating to Los Angeles Revitalization Zone sales tax credit).(J) The credit allowed by former Section 23622 (relating to enterprise zone hiring credit).(K) The credit allowed by Section 23622.7 (relating to enterprise zone hiring credit).(L) The credit allowed by former Section 23623 (relating to program area hiring credit).(M) The credit allowed by former Section 23623.5 (relating to Los Angeles Revitalization Zone hiring credit).(N) The credit allowed by former Section 23625 (relating to Los Angeles Revitalization Zone hiring credit).(O) The credit allowed by Section 23633 (relating to targeted tax area sales or use tax credit).(P) The credit allowed by Section 23634 (relating to targeted tax area hiring credit).(Q) The credit allowed by former Section 23649 (relating to qualified property).(R) For taxable years beginning on or after January 1, 2011, the credit allowed by Section 23685 (relating to qualified motion pictures).(S) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23689 (relating to GO-Biz California Competes Credit).(T) For taxable years beginning on or after January 1, 2016, the credit allowed by Section 23695 (relating to qualified motion pictures).(U) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23686 (relating to the College Access Tax Credit Fund).(V) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 23687 (relating to the College Access Tax Credit Fund).(2) A credit against the tax may not reduce the minimum franchise tax imposed under Chapter 2 (commencing with Section 23101).(e)(f) Any credit which is partially or totally denied under subdivision (d) (e) is allowed to be carried over to reduce the tax in the following year, and succeeding years if necessary, if the provisions relating to that credit include a provision to allow a carryover of the unused portion of that credit.(f)(g) Unless otherwise provided, any remaining carryover from a credit that has been repealed or made inoperative is allowed to be carried over under the provisions of that section as it read immediately prior to being repealed or becoming inoperative.(g)(h) Unless otherwise provided, if two or more taxpayers share in costs that would be eligible for a tax credit allowed under this part, each taxpayer is eligible to receive the tax credit in proportion to his or her respective share of the costs paid or incurred.(h)(i) Unless otherwise provided, in the case of an S corporation, any credit allowed by this part is computed at the S corporation level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit applies to the S corporation and to each shareholder.(i)(j) (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 is 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 taxpayers tax, as defined in subdivision (a), for the taxable year is limited to an amount equal to the excess of the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by excluding the income attributable to that disregarded business entity. A credit is not allowed if the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including the income attributable to the disregarded business entity is less than the taxpayers regular tax (as tax, as defined in Section 23455), 23455, 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 (d), (e), and (f). (e), (f), and (g).(j)(k) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru passthrough entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers 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 prior to the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru passthrough 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 a credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. Chapter 920 of the Statutes of 2001.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 401 of the Revenue and Taxation Code is amended to read:401.The assessor shall assess all property subject to general property taxation at its full value.
Amended IN Assembly March 22, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2574Introduced by Assembly Member Low BloomFebruary 15, 2018 An act to amend Section 401 23036 of the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2574, as amended, Low Bloom. Property taxation: assessment: full value. Corporation taxes: research credit: alternative minimum tax.The Corporation Tax Law allows various credits against the taxes imposed by that law, including, in modified conformity with federal law, a credit for qualified research, as provided. Existing law defines tax for these purposes as several different taxes, including the franchise tax and the corporation income tax. The Corporation Tax Law, in modified conformity with federal law, makes a corporation subject to the alternative minimum tax under specified circumstances. This bill, for each taxable year beginning on or after January 1, 2019, would include the alternative minimum tax in the definition of tax for purposes of allowing the credit for qualified research.This bill would take effect immediately as a tax levy.Existing property tax law requires every assessor to assess all property subject to general property taxation at its full value.This bill would make a nonsubstantive change to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly March 22, 2018
Amended IN Assembly March 22, 2018
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 2574
Introduced by Assembly Member Low BloomFebruary 15, 2018
Introduced by Assembly Member Low Bloom
February 15, 2018
An act to amend Section 401 23036 of the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2574, as amended, Low Bloom. Property taxation: assessment: full value. Corporation taxes: research credit: alternative minimum tax.
The Corporation Tax Law allows various credits against the taxes imposed by that law, including, in modified conformity with federal law, a credit for qualified research, as provided. Existing law defines tax for these purposes as several different taxes, including the franchise tax and the corporation income tax. The Corporation Tax Law, in modified conformity with federal law, makes a corporation subject to the alternative minimum tax under specified circumstances. This bill, for each taxable year beginning on or after January 1, 2019, would include the alternative minimum tax in the definition of tax for purposes of allowing the credit for qualified research.This bill would take effect immediately as a tax levy.Existing property tax law requires every assessor to assess all property subject to general property taxation at its full value.This bill would make a nonsubstantive change to that provision.
The Corporation Tax Law allows various credits against the taxes imposed by that law, including, in modified conformity with federal law, a credit for qualified research, as provided. Existing law defines tax for these purposes as several different taxes, including the franchise tax and the corporation income tax. The Corporation Tax Law, in modified conformity with federal law, makes a corporation subject to the alternative minimum tax under specified circumstances.
This bill, for each taxable year beginning on or after January 1, 2019, would include the alternative minimum tax in the definition of tax for purposes of allowing the credit for qualified research.
This bill would take effect immediately as a tax levy.
Existing property tax law requires every assessor to assess all property subject to general property taxation at its full value.
This bill would make a nonsubstantive change to that provision.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 23036 of the Revenue and Taxation Code is amended to read:23036. (a) (1) The term tax includes any of the following:(A) The tax imposed under Chapter 2 (commencing with Section 23101).(B) The tax imposed under Chapter 3 (commencing with Section 23501).(C) The tax on unrelated business taxable income, imposed under Section 23731.(D) The tax on S corporations imposed under Section 23802.(2) The term tax does not include any amount imposed under paragraph (1) of subdivision (e) of Section 24667 or paragraph (2) of subdivision (f) of Section 24667.(b) For purposes of Article 5 (commencing with Section 18661) of Chapter 2, Article 3 (commencing with Section 19031) of Chapter 4, Article 6 (commencing with Section 19101) of Chapter 4, and Chapter 7 (commencing with Section 19501) of Part 10.2, and for purposes of Sections 18601, 19001, and 19005, the term tax also includes all of the following:(1) The tax on limited partnerships, imposed under Section 17935, the tax on limited liability companies, imposed under Section 17941, and the tax on registered limited liability partnerships and foreign limited liability partnerships imposed under Section 17948.(2) The alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400).(3) The tax on built-in gains of S corporations, imposed under Section 23809.(4) The tax on excess passive investment income of S corporations, imposed under Section 23811.(c) For each taxable year beginning on or after January 1, 2019, for purposes of Section 23609, the term tax shall also include the alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400). (c)(d) Notwithstanding any other provision of this part, credits are allowed against the tax in the following order:(1) Credits that do not contain carryover provisions.(2) Credits that, when the credit exceeds the tax, allow the excess to be carried over to offset the tax in succeeding taxable years, except for those credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455. The order of credits within this paragraph shall be determined by the Franchise Tax Board.(3) The minimum tax credit allowed by Section 23453.(4) Credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455.(5) Credits for taxes withheld under Section 18662.(d)(e) Notwithstanding any other provision of this part, each of the following applies:(1) A credit may not reduce the tax below the tentative minimum tax (as defined by paragraph (1) of subdivision (a) of Section 23455), except the following credits:(A) The credit allowed by former Section 23601 (relating to solar energy).(B) The credit allowed by former Section 23601.4 (relating to solar energy).(C) The credit allowed by former Section 23601.5 (relating to solar energy).(D) The credit allowed by Section 23609 (relating to research expenditures).(E) The credit allowed by former Section 23609.5 (relating to clinical testing expenses).(F) The credit allowed by Section 23610.5 (relating to low-income housing).(G) The credit allowed by former Section 23612 (relating to sales and use tax credit).(H) The credit allowed by Section 23612.2 (relating to enterprise zone sales or use tax credit).(I) The credit allowed by former Section 23612.6 (relating to Los Angeles Revitalization Zone sales tax credit).(J) The credit allowed by former Section 23622 (relating to enterprise zone hiring credit).(K) The credit allowed by Section 23622.7 (relating to enterprise zone hiring credit).(L) The credit allowed by former Section 23623 (relating to program area hiring credit).(M) The credit allowed by former Section 23623.5 (relating to Los Angeles Revitalization Zone hiring credit).(N) The credit allowed by former Section 23625 (relating to Los Angeles Revitalization Zone hiring credit).(O) The credit allowed by Section 23633 (relating to targeted tax area sales or use tax credit).(P) The credit allowed by Section 23634 (relating to targeted tax area hiring credit).(Q) The credit allowed by former Section 23649 (relating to qualified property).(R) For taxable years beginning on or after January 1, 2011, the credit allowed by Section 23685 (relating to qualified motion pictures).(S) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23689 (relating to GO-Biz California Competes Credit).(T) For taxable years beginning on or after January 1, 2016, the credit allowed by Section 23695 (relating to qualified motion pictures).(U) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23686 (relating to the College Access Tax Credit Fund).(V) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 23687 (relating to the College Access Tax Credit Fund).(2) A credit against the tax may not reduce the minimum franchise tax imposed under Chapter 2 (commencing with Section 23101).(e)(f) Any credit which is partially or totally denied under subdivision (d) (e) is allowed to be carried over to reduce the tax in the following year, and succeeding years if necessary, if the provisions relating to that credit include a provision to allow a carryover of the unused portion of that credit.(f)(g) Unless otherwise provided, any remaining carryover from a credit that has been repealed or made inoperative is allowed to be carried over under the provisions of that section as it read immediately prior to being repealed or becoming inoperative.(g)(h) Unless otherwise provided, if two or more taxpayers share in costs that would be eligible for a tax credit allowed under this part, each taxpayer is eligible to receive the tax credit in proportion to his or her respective share of the costs paid or incurred.(h)(i) Unless otherwise provided, in the case of an S corporation, any credit allowed by this part is computed at the S corporation level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit applies to the S corporation and to each shareholder.(i)(j) (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 is 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 taxpayers tax, as defined in subdivision (a), for the taxable year is limited to an amount equal to the excess of the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by excluding the income attributable to that disregarded business entity. A credit is not allowed if the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including the income attributable to the disregarded business entity is less than the taxpayers regular tax (as tax, as defined in Section 23455), 23455, 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 (d), (e), and (f). (e), (f), and (g).(j)(k) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru passthrough entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers 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 prior to the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru passthrough 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 a credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. Chapter 920 of the Statutes of 2001.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 401 of the Revenue and Taxation Code is amended to read:401.The assessor shall assess all property subject to general property taxation at its full value.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 23036 of the Revenue and Taxation Code is amended to read:23036. (a) (1) The term tax includes any of the following:(A) The tax imposed under Chapter 2 (commencing with Section 23101).(B) The tax imposed under Chapter 3 (commencing with Section 23501).(C) The tax on unrelated business taxable income, imposed under Section 23731.(D) The tax on S corporations imposed under Section 23802.(2) The term tax does not include any amount imposed under paragraph (1) of subdivision (e) of Section 24667 or paragraph (2) of subdivision (f) of Section 24667.(b) For purposes of Article 5 (commencing with Section 18661) of Chapter 2, Article 3 (commencing with Section 19031) of Chapter 4, Article 6 (commencing with Section 19101) of Chapter 4, and Chapter 7 (commencing with Section 19501) of Part 10.2, and for purposes of Sections 18601, 19001, and 19005, the term tax also includes all of the following:(1) The tax on limited partnerships, imposed under Section 17935, the tax on limited liability companies, imposed under Section 17941, and the tax on registered limited liability partnerships and foreign limited liability partnerships imposed under Section 17948.(2) The alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400).(3) The tax on built-in gains of S corporations, imposed under Section 23809.(4) The tax on excess passive investment income of S corporations, imposed under Section 23811.(c) For each taxable year beginning on or after January 1, 2019, for purposes of Section 23609, the term tax shall also include the alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400). (c)(d) Notwithstanding any other provision of this part, credits are allowed against the tax in the following order:(1) Credits that do not contain carryover provisions.(2) Credits that, when the credit exceeds the tax, allow the excess to be carried over to offset the tax in succeeding taxable years, except for those credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455. The order of credits within this paragraph shall be determined by the Franchise Tax Board.(3) The minimum tax credit allowed by Section 23453.(4) Credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455.(5) Credits for taxes withheld under Section 18662.(d)(e) Notwithstanding any other provision of this part, each of the following applies:(1) A credit may not reduce the tax below the tentative minimum tax (as defined by paragraph (1) of subdivision (a) of Section 23455), except the following credits:(A) The credit allowed by former Section 23601 (relating to solar energy).(B) The credit allowed by former Section 23601.4 (relating to solar energy).(C) The credit allowed by former Section 23601.5 (relating to solar energy).(D) The credit allowed by Section 23609 (relating to research expenditures).(E) The credit allowed by former Section 23609.5 (relating to clinical testing expenses).(F) The credit allowed by Section 23610.5 (relating to low-income housing).(G) The credit allowed by former Section 23612 (relating to sales and use tax credit).(H) The credit allowed by Section 23612.2 (relating to enterprise zone sales or use tax credit).(I) The credit allowed by former Section 23612.6 (relating to Los Angeles Revitalization Zone sales tax credit).(J) The credit allowed by former Section 23622 (relating to enterprise zone hiring credit).(K) The credit allowed by Section 23622.7 (relating to enterprise zone hiring credit).(L) The credit allowed by former Section 23623 (relating to program area hiring credit).(M) The credit allowed by former Section 23623.5 (relating to Los Angeles Revitalization Zone hiring credit).(N) The credit allowed by former Section 23625 (relating to Los Angeles Revitalization Zone hiring credit).(O) The credit allowed by Section 23633 (relating to targeted tax area sales or use tax credit).(P) The credit allowed by Section 23634 (relating to targeted tax area hiring credit).(Q) The credit allowed by former Section 23649 (relating to qualified property).(R) For taxable years beginning on or after January 1, 2011, the credit allowed by Section 23685 (relating to qualified motion pictures).(S) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23689 (relating to GO-Biz California Competes Credit).(T) For taxable years beginning on or after January 1, 2016, the credit allowed by Section 23695 (relating to qualified motion pictures).(U) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23686 (relating to the College Access Tax Credit Fund).(V) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 23687 (relating to the College Access Tax Credit Fund).(2) A credit against the tax may not reduce the minimum franchise tax imposed under Chapter 2 (commencing with Section 23101).(e)(f) Any credit which is partially or totally denied under subdivision (d) (e) is allowed to be carried over to reduce the tax in the following year, and succeeding years if necessary, if the provisions relating to that credit include a provision to allow a carryover of the unused portion of that credit.(f)(g) Unless otherwise provided, any remaining carryover from a credit that has been repealed or made inoperative is allowed to be carried over under the provisions of that section as it read immediately prior to being repealed or becoming inoperative.(g)(h) Unless otherwise provided, if two or more taxpayers share in costs that would be eligible for a tax credit allowed under this part, each taxpayer is eligible to receive the tax credit in proportion to his or her respective share of the costs paid or incurred.(h)(i) Unless otherwise provided, in the case of an S corporation, any credit allowed by this part is computed at the S corporation level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit applies to the S corporation and to each shareholder.(i)(j) (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 is 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 taxpayers tax, as defined in subdivision (a), for the taxable year is limited to an amount equal to the excess of the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by excluding the income attributable to that disregarded business entity. A credit is not allowed if the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including the income attributable to the disregarded business entity is less than the taxpayers regular tax (as tax, as defined in Section 23455), 23455, 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 (d), (e), and (f). (e), (f), and (g).(j)(k) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru passthrough entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers 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 prior to the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru passthrough 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 a credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. Chapter 920 of the Statutes of 2001.
SECTION 1. Section 23036 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
23036. (a) (1) The term tax includes any of the following:(A) The tax imposed under Chapter 2 (commencing with Section 23101).(B) The tax imposed under Chapter 3 (commencing with Section 23501).(C) The tax on unrelated business taxable income, imposed under Section 23731.(D) The tax on S corporations imposed under Section 23802.(2) The term tax does not include any amount imposed under paragraph (1) of subdivision (e) of Section 24667 or paragraph (2) of subdivision (f) of Section 24667.(b) For purposes of Article 5 (commencing with Section 18661) of Chapter 2, Article 3 (commencing with Section 19031) of Chapter 4, Article 6 (commencing with Section 19101) of Chapter 4, and Chapter 7 (commencing with Section 19501) of Part 10.2, and for purposes of Sections 18601, 19001, and 19005, the term tax also includes all of the following:(1) The tax on limited partnerships, imposed under Section 17935, the tax on limited liability companies, imposed under Section 17941, and the tax on registered limited liability partnerships and foreign limited liability partnerships imposed under Section 17948.(2) The alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400).(3) The tax on built-in gains of S corporations, imposed under Section 23809.(4) The tax on excess passive investment income of S corporations, imposed under Section 23811.(c) For each taxable year beginning on or after January 1, 2019, for purposes of Section 23609, the term tax shall also include the alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400). (c)(d) Notwithstanding any other provision of this part, credits are allowed against the tax in the following order:(1) Credits that do not contain carryover provisions.(2) Credits that, when the credit exceeds the tax, allow the excess to be carried over to offset the tax in succeeding taxable years, except for those credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455. The order of credits within this paragraph shall be determined by the Franchise Tax Board.(3) The minimum tax credit allowed by Section 23453.(4) Credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455.(5) Credits for taxes withheld under Section 18662.(d)(e) Notwithstanding any other provision of this part, each of the following applies:(1) A credit may not reduce the tax below the tentative minimum tax (as defined by paragraph (1) of subdivision (a) of Section 23455), except the following credits:(A) The credit allowed by former Section 23601 (relating to solar energy).(B) The credit allowed by former Section 23601.4 (relating to solar energy).(C) The credit allowed by former Section 23601.5 (relating to solar energy).(D) The credit allowed by Section 23609 (relating to research expenditures).(E) The credit allowed by former Section 23609.5 (relating to clinical testing expenses).(F) The credit allowed by Section 23610.5 (relating to low-income housing).(G) The credit allowed by former Section 23612 (relating to sales and use tax credit).(H) The credit allowed by Section 23612.2 (relating to enterprise zone sales or use tax credit).(I) The credit allowed by former Section 23612.6 (relating to Los Angeles Revitalization Zone sales tax credit).(J) The credit allowed by former Section 23622 (relating to enterprise zone hiring credit).(K) The credit allowed by Section 23622.7 (relating to enterprise zone hiring credit).(L) The credit allowed by former Section 23623 (relating to program area hiring credit).(M) The credit allowed by former Section 23623.5 (relating to Los Angeles Revitalization Zone hiring credit).(N) The credit allowed by former Section 23625 (relating to Los Angeles Revitalization Zone hiring credit).(O) The credit allowed by Section 23633 (relating to targeted tax area sales or use tax credit).(P) The credit allowed by Section 23634 (relating to targeted tax area hiring credit).(Q) The credit allowed by former Section 23649 (relating to qualified property).(R) For taxable years beginning on or after January 1, 2011, the credit allowed by Section 23685 (relating to qualified motion pictures).(S) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23689 (relating to GO-Biz California Competes Credit).(T) For taxable years beginning on or after January 1, 2016, the credit allowed by Section 23695 (relating to qualified motion pictures).(U) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23686 (relating to the College Access Tax Credit Fund).(V) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 23687 (relating to the College Access Tax Credit Fund).(2) A credit against the tax may not reduce the minimum franchise tax imposed under Chapter 2 (commencing with Section 23101).(e)(f) Any credit which is partially or totally denied under subdivision (d) (e) is allowed to be carried over to reduce the tax in the following year, and succeeding years if necessary, if the provisions relating to that credit include a provision to allow a carryover of the unused portion of that credit.(f)(g) Unless otherwise provided, any remaining carryover from a credit that has been repealed or made inoperative is allowed to be carried over under the provisions of that section as it read immediately prior to being repealed or becoming inoperative.(g)(h) Unless otherwise provided, if two or more taxpayers share in costs that would be eligible for a tax credit allowed under this part, each taxpayer is eligible to receive the tax credit in proportion to his or her respective share of the costs paid or incurred.(h)(i) Unless otherwise provided, in the case of an S corporation, any credit allowed by this part is computed at the S corporation level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit applies to the S corporation and to each shareholder.(i)(j) (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 is 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 taxpayers tax, as defined in subdivision (a), for the taxable year is limited to an amount equal to the excess of the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by excluding the income attributable to that disregarded business entity. A credit is not allowed if the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including the income attributable to the disregarded business entity is less than the taxpayers regular tax (as tax, as defined in Section 23455), 23455, 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 (d), (e), and (f). (e), (f), and (g).(j)(k) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru passthrough entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers 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 prior to the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru passthrough 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 a credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. Chapter 920 of the Statutes of 2001.
23036. (a) (1) The term tax includes any of the following:(A) The tax imposed under Chapter 2 (commencing with Section 23101).(B) The tax imposed under Chapter 3 (commencing with Section 23501).(C) The tax on unrelated business taxable income, imposed under Section 23731.(D) The tax on S corporations imposed under Section 23802.(2) The term tax does not include any amount imposed under paragraph (1) of subdivision (e) of Section 24667 or paragraph (2) of subdivision (f) of Section 24667.(b) For purposes of Article 5 (commencing with Section 18661) of Chapter 2, Article 3 (commencing with Section 19031) of Chapter 4, Article 6 (commencing with Section 19101) of Chapter 4, and Chapter 7 (commencing with Section 19501) of Part 10.2, and for purposes of Sections 18601, 19001, and 19005, the term tax also includes all of the following:(1) The tax on limited partnerships, imposed under Section 17935, the tax on limited liability companies, imposed under Section 17941, and the tax on registered limited liability partnerships and foreign limited liability partnerships imposed under Section 17948.(2) The alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400).(3) The tax on built-in gains of S corporations, imposed under Section 23809.(4) The tax on excess passive investment income of S corporations, imposed under Section 23811.(c) For each taxable year beginning on or after January 1, 2019, for purposes of Section 23609, the term tax shall also include the alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400). (c)(d) Notwithstanding any other provision of this part, credits are allowed against the tax in the following order:(1) Credits that do not contain carryover provisions.(2) Credits that, when the credit exceeds the tax, allow the excess to be carried over to offset the tax in succeeding taxable years, except for those credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455. The order of credits within this paragraph shall be determined by the Franchise Tax Board.(3) The minimum tax credit allowed by Section 23453.(4) Credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455.(5) Credits for taxes withheld under Section 18662.(d)(e) Notwithstanding any other provision of this part, each of the following applies:(1) A credit may not reduce the tax below the tentative minimum tax (as defined by paragraph (1) of subdivision (a) of Section 23455), except the following credits:(A) The credit allowed by former Section 23601 (relating to solar energy).(B) The credit allowed by former Section 23601.4 (relating to solar energy).(C) The credit allowed by former Section 23601.5 (relating to solar energy).(D) The credit allowed by Section 23609 (relating to research expenditures).(E) The credit allowed by former Section 23609.5 (relating to clinical testing expenses).(F) The credit allowed by Section 23610.5 (relating to low-income housing).(G) The credit allowed by former Section 23612 (relating to sales and use tax credit).(H) The credit allowed by Section 23612.2 (relating to enterprise zone sales or use tax credit).(I) The credit allowed by former Section 23612.6 (relating to Los Angeles Revitalization Zone sales tax credit).(J) The credit allowed by former Section 23622 (relating to enterprise zone hiring credit).(K) The credit allowed by Section 23622.7 (relating to enterprise zone hiring credit).(L) The credit allowed by former Section 23623 (relating to program area hiring credit).(M) The credit allowed by former Section 23623.5 (relating to Los Angeles Revitalization Zone hiring credit).(N) The credit allowed by former Section 23625 (relating to Los Angeles Revitalization Zone hiring credit).(O) The credit allowed by Section 23633 (relating to targeted tax area sales or use tax credit).(P) The credit allowed by Section 23634 (relating to targeted tax area hiring credit).(Q) The credit allowed by former Section 23649 (relating to qualified property).(R) For taxable years beginning on or after January 1, 2011, the credit allowed by Section 23685 (relating to qualified motion pictures).(S) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23689 (relating to GO-Biz California Competes Credit).(T) For taxable years beginning on or after January 1, 2016, the credit allowed by Section 23695 (relating to qualified motion pictures).(U) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23686 (relating to the College Access Tax Credit Fund).(V) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 23687 (relating to the College Access Tax Credit Fund).(2) A credit against the tax may not reduce the minimum franchise tax imposed under Chapter 2 (commencing with Section 23101).(e)(f) Any credit which is partially or totally denied under subdivision (d) (e) is allowed to be carried over to reduce the tax in the following year, and succeeding years if necessary, if the provisions relating to that credit include a provision to allow a carryover of the unused portion of that credit.(f)(g) Unless otherwise provided, any remaining carryover from a credit that has been repealed or made inoperative is allowed to be carried over under the provisions of that section as it read immediately prior to being repealed or becoming inoperative.(g)(h) Unless otherwise provided, if two or more taxpayers share in costs that would be eligible for a tax credit allowed under this part, each taxpayer is eligible to receive the tax credit in proportion to his or her respective share of the costs paid or incurred.(h)(i) Unless otherwise provided, in the case of an S corporation, any credit allowed by this part is computed at the S corporation level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit applies to the S corporation and to each shareholder.(i)(j) (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 is 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 taxpayers tax, as defined in subdivision (a), for the taxable year is limited to an amount equal to the excess of the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by excluding the income attributable to that disregarded business entity. A credit is not allowed if the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including the income attributable to the disregarded business entity is less than the taxpayers regular tax (as tax, as defined in Section 23455), 23455, 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 (d), (e), and (f). (e), (f), and (g).(j)(k) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru passthrough entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers 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 prior to the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru passthrough 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 a credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. Chapter 920 of the Statutes of 2001.
23036. (a) (1) The term tax includes any of the following:(A) The tax imposed under Chapter 2 (commencing with Section 23101).(B) The tax imposed under Chapter 3 (commencing with Section 23501).(C) The tax on unrelated business taxable income, imposed under Section 23731.(D) The tax on S corporations imposed under Section 23802.(2) The term tax does not include any amount imposed under paragraph (1) of subdivision (e) of Section 24667 or paragraph (2) of subdivision (f) of Section 24667.(b) For purposes of Article 5 (commencing with Section 18661) of Chapter 2, Article 3 (commencing with Section 19031) of Chapter 4, Article 6 (commencing with Section 19101) of Chapter 4, and Chapter 7 (commencing with Section 19501) of Part 10.2, and for purposes of Sections 18601, 19001, and 19005, the term tax also includes all of the following:(1) The tax on limited partnerships, imposed under Section 17935, the tax on limited liability companies, imposed under Section 17941, and the tax on registered limited liability partnerships and foreign limited liability partnerships imposed under Section 17948.(2) The alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400).(3) The tax on built-in gains of S corporations, imposed under Section 23809.(4) The tax on excess passive investment income of S corporations, imposed under Section 23811.(c) For each taxable year beginning on or after January 1, 2019, for purposes of Section 23609, the term tax shall also include the alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400). (c)(d) Notwithstanding any other provision of this part, credits are allowed against the tax in the following order:(1) Credits that do not contain carryover provisions.(2) Credits that, when the credit exceeds the tax, allow the excess to be carried over to offset the tax in succeeding taxable years, except for those credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455. The order of credits within this paragraph shall be determined by the Franchise Tax Board.(3) The minimum tax credit allowed by Section 23453.(4) Credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455.(5) Credits for taxes withheld under Section 18662.(d)(e) Notwithstanding any other provision of this part, each of the following applies:(1) A credit may not reduce the tax below the tentative minimum tax (as defined by paragraph (1) of subdivision (a) of Section 23455), except the following credits:(A) The credit allowed by former Section 23601 (relating to solar energy).(B) The credit allowed by former Section 23601.4 (relating to solar energy).(C) The credit allowed by former Section 23601.5 (relating to solar energy).(D) The credit allowed by Section 23609 (relating to research expenditures).(E) The credit allowed by former Section 23609.5 (relating to clinical testing expenses).(F) The credit allowed by Section 23610.5 (relating to low-income housing).(G) The credit allowed by former Section 23612 (relating to sales and use tax credit).(H) The credit allowed by Section 23612.2 (relating to enterprise zone sales or use tax credit).(I) The credit allowed by former Section 23612.6 (relating to Los Angeles Revitalization Zone sales tax credit).(J) The credit allowed by former Section 23622 (relating to enterprise zone hiring credit).(K) The credit allowed by Section 23622.7 (relating to enterprise zone hiring credit).(L) The credit allowed by former Section 23623 (relating to program area hiring credit).(M) The credit allowed by former Section 23623.5 (relating to Los Angeles Revitalization Zone hiring credit).(N) The credit allowed by former Section 23625 (relating to Los Angeles Revitalization Zone hiring credit).(O) The credit allowed by Section 23633 (relating to targeted tax area sales or use tax credit).(P) The credit allowed by Section 23634 (relating to targeted tax area hiring credit).(Q) The credit allowed by former Section 23649 (relating to qualified property).(R) For taxable years beginning on or after January 1, 2011, the credit allowed by Section 23685 (relating to qualified motion pictures).(S) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23689 (relating to GO-Biz California Competes Credit).(T) For taxable years beginning on or after January 1, 2016, the credit allowed by Section 23695 (relating to qualified motion pictures).(U) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23686 (relating to the College Access Tax Credit Fund).(V) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 23687 (relating to the College Access Tax Credit Fund).(2) A credit against the tax may not reduce the minimum franchise tax imposed under Chapter 2 (commencing with Section 23101).(e)(f) Any credit which is partially or totally denied under subdivision (d) (e) is allowed to be carried over to reduce the tax in the following year, and succeeding years if necessary, if the provisions relating to that credit include a provision to allow a carryover of the unused portion of that credit.(f)(g) Unless otherwise provided, any remaining carryover from a credit that has been repealed or made inoperative is allowed to be carried over under the provisions of that section as it read immediately prior to being repealed or becoming inoperative.(g)(h) Unless otherwise provided, if two or more taxpayers share in costs that would be eligible for a tax credit allowed under this part, each taxpayer is eligible to receive the tax credit in proportion to his or her respective share of the costs paid or incurred.(h)(i) Unless otherwise provided, in the case of an S corporation, any credit allowed by this part is computed at the S corporation level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit applies to the S corporation and to each shareholder.(i)(j) (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 is 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 taxpayers tax, as defined in subdivision (a), for the taxable year is limited to an amount equal to the excess of the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by excluding the income attributable to that disregarded business entity. A credit is not allowed if the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including the income attributable to the disregarded business entity is less than the taxpayers regular tax (as tax, as defined in Section 23455), 23455, 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 (d), (e), and (f). (e), (f), and (g).(j)(k) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru passthrough entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers 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 prior to the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru passthrough 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 a credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. Chapter 920 of the Statutes of 2001.
23036. (a) (1) The term tax includes any of the following:
(A) The tax imposed under Chapter 2 (commencing with Section 23101).
(B) The tax imposed under Chapter 3 (commencing with Section 23501).
(C) The tax on unrelated business taxable income, imposed under Section 23731.
(D) The tax on S corporations imposed under Section 23802.
(2) The term tax does not include any amount imposed under paragraph (1) of subdivision (e) of Section 24667 or paragraph (2) of subdivision (f) of Section 24667.
(b) For purposes of Article 5 (commencing with Section 18661) of Chapter 2, Article 3 (commencing with Section 19031) of Chapter 4, Article 6 (commencing with Section 19101) of Chapter 4, and Chapter 7 (commencing with Section 19501) of Part 10.2, and for purposes of Sections 18601, 19001, and 19005, the term tax also includes all of the following:
(1) The tax on limited partnerships, imposed under Section 17935, the tax on limited liability companies, imposed under Section 17941, and the tax on registered limited liability partnerships and foreign limited liability partnerships imposed under Section 17948.
(2) The alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400).
(3) The tax on built-in gains of S corporations, imposed under Section 23809.
(4) The tax on excess passive investment income of S corporations, imposed under Section 23811.
(c) For each taxable year beginning on or after January 1, 2019, for purposes of Section 23609, the term tax shall also include the alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400).
(c)
(d) Notwithstanding any other provision of this part, credits are allowed against the tax in the following order:
(1) Credits that do not contain carryover provisions.
(2) Credits that, when the credit exceeds the tax, allow the excess to be carried over to offset the tax in succeeding taxable years, except for those credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455. The order of credits within this paragraph shall be determined by the Franchise Tax Board.
(3) The minimum tax credit allowed by Section 23453.
(4) Credits that are allowed to reduce the tax below the tentative minimum tax, as defined by Section 23455.
(5) Credits for taxes withheld under Section 18662.
(d)
(e) Notwithstanding any other provision of this part, each of the following applies:
(1) A credit may not reduce the tax below the tentative minimum tax (as defined by paragraph (1) of subdivision (a) of Section 23455), except the following credits:
(A) The credit allowed by former Section 23601 (relating to solar energy).
(B) The credit allowed by former Section 23601.4 (relating to solar energy).
(C) The credit allowed by former Section 23601.5 (relating to solar energy).
(D) The credit allowed by Section 23609 (relating to research expenditures).
(E) The credit allowed by former Section 23609.5 (relating to clinical testing expenses).
(F) The credit allowed by Section 23610.5 (relating to low-income housing).
(G) The credit allowed by former Section 23612 (relating to sales and use tax credit).
(H) The credit allowed by Section 23612.2 (relating to enterprise zone sales or use tax credit).
(I) The credit allowed by former Section 23612.6 (relating to Los Angeles Revitalization Zone sales tax credit).
(J) The credit allowed by former Section 23622 (relating to enterprise zone hiring credit).
(K) The credit allowed by Section 23622.7 (relating to enterprise zone hiring credit).
(L) The credit allowed by former Section 23623 (relating to program area hiring credit).
(M) The credit allowed by former Section 23623.5 (relating to Los Angeles Revitalization Zone hiring credit).
(N) The credit allowed by former Section 23625 (relating to Los Angeles Revitalization Zone hiring credit).
(O) The credit allowed by Section 23633 (relating to targeted tax area sales or use tax credit).
(P) The credit allowed by Section 23634 (relating to targeted tax area hiring credit).
(Q) The credit allowed by former Section 23649 (relating to qualified property).
(R) For taxable years beginning on or after January 1, 2011, the credit allowed by Section 23685 (relating to qualified motion pictures).
(S) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23689 (relating to GO-Biz California Competes Credit).
(T) For taxable years beginning on or after January 1, 2016, the credit allowed by Section 23695 (relating to qualified motion pictures).
(U) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23686 (relating to the College Access Tax Credit Fund).
(V) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 23687 (relating to the College Access Tax Credit Fund).
(2) A credit against the tax may not reduce the minimum franchise tax imposed under Chapter 2 (commencing with Section 23101).
(e)
(f) Any credit which is partially or totally denied under subdivision (d) (e) is allowed to be carried over to reduce the tax in the following year, and succeeding years if necessary, if the provisions relating to that credit include a provision to allow a carryover of the unused portion of that credit.
(f)
(g) Unless otherwise provided, any remaining carryover from a credit that has been repealed or made inoperative is allowed to be carried over under the provisions of that section as it read immediately prior to being repealed or becoming inoperative.
(g)
(h) Unless otherwise provided, if two or more taxpayers share in costs that would be eligible for a tax credit allowed under this part, each taxpayer is eligible to receive the tax credit in proportion to his or her respective share of the costs paid or incurred.
(h)
(i) Unless otherwise provided, in the case of an S corporation, any credit allowed by this part is computed at the S corporation level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit applies to the S corporation and to each shareholder.
(i)
(j) (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 is 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 taxpayers tax, as defined in subdivision (a), for the taxable year is limited to an amount equal to the excess of the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by excluding the income attributable to that disregarded business entity. A credit is not allowed if the taxpayers regular tax (as tax, as defined in Section 23455), 23455, determined by including the income attributable to the disregarded business entity is less than the taxpayers regular tax (as tax, as defined in Section 23455), 23455, 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 (d), (e), and (f). (e), (f), and (g).
(j)
(k) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru passthrough entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers 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 prior to the close of that taxable year.
(2) For purposes of this subdivision, eligible pass-thru passthrough 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 a credit is operative.
(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. Chapter 920 of the Statutes of 2001.
SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
### SEC. 2.
The assessor shall assess all property subject to general property taxation at its full value.