Governor Newsom signed California Assembly Bill 150 into law on July 16, 2021. This new law allows certain pass-through entities to annually elect to pay an elective tax in the amount of 9.3% of the pro rata share or distributive share of the entity's partners, shareholders, or members.

For taxable years beginning on or after January 1, 2021, and before January 1, 2026, qualifying pass-through entities (PTEs) may annually elect to pay an entity level state tax on income. Qualified taxpayers receive a credit for their share of the entity level tax, reducing their California personal income tax. Do you qualify?

2021年8月20日 · California Assembly Bill 150 (“AB 150”) is the long awaited California “work around” to the federal income tax deduction limitation on state and local income taxes. The $10,000 federal deduction limitation applies until 2026, when it sunsets.

2023年2月9日 · Part 10.4 of the California Assembly Bill No. 150 (AB 150), passed on July 16, 2021, is California’s answer to the SALT-cap deduction. Note that only the Small Business Relief Act (Part 10.4) of AB 150 addresses the SALT workaround.

Since its inception, the TCJA has been an obstacle for pass-through entities seeking tax deductions; the California AB 150 is designed to overcome it. Its Small Business Relief Act in particular provides opportunities for eligible entities to receive a tax credit.

2021年9月3日 · On July 16, 2021, Governor Gavin Newsom signed Assembly Bill 150 into law. This bill enables certain California taxpayers to write off more than the $10,000 limit placed on state and local tax (SALT) deductions — but it’s not automatic, you need to …

As originally enacted by AB 150, the credit could not reduce a taxpayer’s tentative minimum tax, which could drastically limit the amount of credit a taxpayer can claim.