Tax News

CCH (cch.taxgroup.com) reports:

  The California Legislature has passed a budget (A.B. 1781) and numerous trailer bills, including a budget trailer bill that would limit corporation franchise and income tax and personal income tax business credits; allow unitary group members to assign corporation franchise and income tax credits to other members of the unitary group; temporarily suspend net operating losses (NOLs), but thereafter conform to the federal NOL carryback and carryover provisions; authorize an amnesty program for unpaid corporation franchise and income tax and personal income taxes; require limited liability companies (LLCs) to make estimated LLC fee payments; and expand the existing rebuttable presumption that a vehicle shipped or brought into California within 90 days from the purchase date is subject to use tax to apply to vehicles, vessels, and aircraft purchased out of state within 12 months of the purchase date.

  Governor Schwarzenegger has stated that he would veto these bills, but legislative leaders contend that they have the votes necessary to override the veto. Below is a brief summary of the provisions contained in A.B. 1452, the budget trailer bill that contains many of the tax provisions included in the budget compromise package.