California Revenue and Taxation Code

§ 19900

RTC § 19900 Effective Oct 1, 2025Div. 2 · Part 10.4

Statute text

(a)(1) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, a qualified entity doing business in this state, as defined in Section 23101, and that is required to file a return under Section 18633, 18633.5, or subdivision (a) of Section 18601, may elect to annually pay an elective tax according to or measured by its qualified net income, defined in paragraph (2), computed at the rate of 9.3 percent for the taxable year for which the election is made.

(2)For purposes of this section, the “qualified net income” of a qualified entity means the sum of the pro rata share or distributive share of income, and any guaranteed payments, as described by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, subject to tax under Part 10 (commencing with Section 17001) for the taxable year of each qualified taxpayer, as defined in Section 17052.10.

(b)(1) The elective tax authorized by this part shall be in addition to, and not in place of, any other tax or fee required to be paid under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001).

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Legislative history

Amended by Stats. 2025, Ch. 231, Sec. 73. (SB 711) Effective October 1, 2025. Conditionally inoperative pursuant to Section 19906. Repealed on or before December 1, 2026, pursuant to Section 19906.