California Revenue and Taxation Code

§ 17039

RTC § 17039 Effective Sep 19, 2025Div. 2 · Part 10 · Ch. 1

Statute text

(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.

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Legislative history

Amended by Stats. 2025, Ch. 119, Sec. 63. (SB 254) Effective September 19, 2025.