CA Pass-Through Entity Elective Tax (AB-150)
CA’s PTET signed into law in 2021 on CA AB-150 creates an Optional 9.3% Entity-Level Tax calculated on the entity’s CA Net Income for Tax Purposes
In turn, this creates a dollar-for-dollar, non-refundable CA individual tax credit, for the entity’s owners.
This comes as a response to the Federal TCJA of 2017 that created a SALT Cap of $10k, leaving most California’s without the ability to write off their state taxes.
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