California Revenue and Taxation Code

§ 24438

RTC § 24438 Effective Jan 1, 2001Div. 2 · Part 11 · Ch. 7 · Art. 3

Statute text

(a)No deduction shall be allowed for any interest paid or incurred by a taxpayer during the taxable year with respect to its corporate acquisition indebtedness to the extent that such interest exceeds—

(1)Five million dollars ($5,000,000), reduced by

(2)The amount of interest paid or incurred by such corporation during such year on obligations (A) issued after December 31, 1967, to provide consideration for an acquisition described in paragraph (1) of subdivision (b), but (B) which are not corporate acquisition indebtedness.

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Legislative history

Amended by Stats. 2000, Ch. 862, Sec. 169. Effective January 1, 2001.