AB 1576: Personal Income Tax Law: Corporation Tax Law: disregarded entities: credit limitation.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, and specify certain limitations and requirements with respect to the application of credits, including limitations on credits allowed with respect to disregarded entities in excess of the tax imposed on income related to those disregarded entities.

This bill would make remove the above-described limitation on credits allowed with respect to disregarded entities applicable only to taxable years beginning before January 1, 2023, thereby removing that limitation for taxable years beginning on or after January 1, 2023. for credits generated in taxable years beginning on or after January 1, 2023, if the credit can be assigned, as provided.

This bill would take effect immediately as a tax levy.