California Revenue and Taxation Code

§ 24455

RTC § 24455 Effective Jan 1, 2014Div. 2 · Part 11 · Ch. 8

Statute text

(a)The Franchise Tax Board may include in the gross income of the taxpayer (or a member of the taxpayer’s combined reporting group) in that taxable year the taxpayer’s pro rata share (or the pro rata share of a member of the taxpayer’s combined reporting group) of any of those insurers’ current earnings and profits in that taxable year, but not to exceed an amount equal to the specific insurer’s net income attributable to investment income for that year minus that insurer’s net written premiums received in that same taxable year, if all of the following apply:

(1)For any taxable year an insurer is a member of a taxpayer’s commonly controlled group.

(2)The ratio of the five-year average net written premiums to the five-year average total income of all insurers in the commonly controlled group is equal to or less than 0.10 (or, for taxable years beginning on or after January 1, 2008, 0.15).

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Legislative history

Added by renumbering Section 24900 by Stats. 2013, Ch. 76, Sec. 190. (AB 383) Effective January 1, 2014.