reglab/statecodes huggingface dataset:
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 1 - Imposition of Tax › Section 23504 - Taxpayers Formerly Subject to Franchise Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Every corporation, the income of which was included in
						the measure of tax imposed under Chapter 2, and which becomes subject to the
						tax imposed by this article, shall, in the income year that the change occurs,
						remain subject to the tax imposed under Chapter 2. In subsequent years its
						income, to the extent derived from sources in this State, is taxable under this
						article.
Such corporations are also required to file a return for
						the calendar year in which such change occurs, even though in most cases,
						because its tax will have been prepaid under Chapter 2, no tax is due. The
						provisions of this paragraph may be illustrated by the following
						example:
EXAMPLE:
The A Corporation was doing business in California and
						reporting on a calendar year basis. It commenced doing business in 19X1 and
						ceased business activities and surrendered its right to do intrastate business
						in this State on June 30, 19X8, but continued to derive income from sources
						within this State; thereby becoming subject to the tax imposed by this article.
						It filed a franchise tax return for the income year ended December 31, 19X7,
						which under Section
						23222 paid its tax for taxable
						year ending December 31, 19X8. A is required to file a tax return for
						information purposes for the income year ended December 31, 19X8, even though
						no tax may be due. If A continues to derive income from sources within this
						State, it will be required to file an income tax return under this article for
						the income year ending December 31, 19X9, and subsequent income years. The fact
						that A is required to file an information return for the income year ended
						December 31, 19X8, does not affect A's right to have its tax prorated for the
						year of withdrawal. See Reg. 23331, 23332 and 23334.
1.
						Renumbering and amendment of Section
						23501-23504(c) to
						Section 23504 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  23504,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23636-0 - Table of Contents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Table of Contents -- Regulation Sections
						23636-1 through
						23636-9
Section 23636-1.
The Joint Strike
					 Fighter (JSF) Wage Credit.
(a) In
					 General
(b) Joint Strike Fighter
					 Property Credit
(c) Cross
					 References
(d) General
					 References
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23636-1 - The Joint Strike Fighter (JSF) Wage Credit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Joint Strike Fighter (JSF) Wage Credit -- (See
						Regulation
						23636-0
						for Table of Contents.)
(a) In
					 General. The Joint Strike Fighter (JSF) Wage Credit is allowed to any qualified
					 taxpayer for each taxable year beginning on or after January 1, 2001, and
					 before January 1, 2006, in the following amounts:
(1) Fifty percent of qualified wages paid or
					 incurred during any taxable year beginning on or after January 1, 2001, and
					 before January 1, 2002.
(2) Forty
					 percent of qualified wages paid or incurred during any taxable year beginning
					 on or after January 1, 2002, and before January 1, 2003.
(3) Thirty percent of qualified wages paid or
					 incurred during any taxable year beginning on or after January 1, 2003, and
					 before January 1, 2004.
(4) Twenty
					 percent of qualified wages paid or incurred during any taxable year beginning
					 on or after January 1, 2004, and before January 1, 2005.
(5) Ten percent of qualified wages paid or
					 incurred during any taxable year beginning on or after January 1, 2005, and
					 before January 1, 2006.
The credit allowed by Revenue and Taxation Code section
						23636
						and this regulation shall not exceed ten thousand dollars ($10,000) per year,
						per qualified employee, subject to reduction as provided in Revenue and
						Taxation Code section
						23636, subsection (c), and this
						Regulation 23636-5 for employees that are qualified employees for only part of
						a taxable year.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23636-3 - Qualified Taxpayer

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Qualified Taxpayer -- (See Regulation 23636-0 for Table
						of Contents.)
(a) Regulation 23637-3
					 Shall Apply. For purposes of Regulations 23636-1 through 23636-9, inclusive,
					 the provisions of Regulation 23637-3, as in effect on the date these
					 regulations become effective, shall apply and are incorporated herein by
					 reference. The term "qualified taxpayer" in this regulation shall have the same
					 meaning as the term qualified taxpayer in Regulation 23637-3.
1. New
						section filed 1-23-2003; operative 2-22-2003 (Register 2003, No.
						4).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  23636,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23636-7 - JSF Wage Credit Carryforwards

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
JSF Wage Credit Carryforwards -- (See Regulation 23636-0
						for Table of Contents.)
(a) In
					 General. In any case where the JSF Wage Credit exceeds the "tax," the excess
					 may be carried forward to reduce the "tax" for the eight taxable years
					 succeeding the taxable year for which the JSF Wage Credit is allowed, if
					 necessary, until the credit is exhausted.
(b) Carryforwards for Pass-Through Entities.
					 In the case of any JSF Wage Credit allowed to a pass-through entity, the
					 determination of the applicable carryover period for any JSF Wage Credit
					 required to be carried forward shall be made at the pass-through entity
					 level.
(c) Carryforwards Permitted
					 After Sunset. For taxable years commencing on or after January 1, 2006, any
					 unused JSF Wage Credit may be carried forward, as provided above, until the
					 unused JSF Wage Credit is exhausted.
1. New
						section filed 1-23-2003; operative 2-22-2003 (Register 2003, No.
						4).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  23636,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23636-8 - Recordkeeping Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Recordkeeping Requirements -- (See Regulation 23636-0 for
						Table of Contents.)
(a) In General.
					 For purposes of Regulations 23636-1 through 23636-9, inclusive, a qualified
					 taxpayer shall be required to maintain books and records that are adequate to
					 substantiate its entitlement to any claimed JSF Wage Credit. These books and
					 records should be retained for as long as the statute of limitations on
					 assessment for the taxable year for which the JSF Wage Credit was allowed
					 remains open, and, in the case of any JSF Wage Credit that is being carried
					 forward, for the additional number of years that the actual carryforward of
					 such JSF Wage Credit occurs.
(b)
					 Books and Records. The books and records maintained by the qualified taxpayer
					 should be sufficient to clearly establish all necessary facts that affect the
					 allowance and amount of the JSF Wage Credit. For this purpose, "adequate"
					 recordkeeping depends upon the sufficiency of the information contained in the
					 documentation. In many cases, the books and records normally maintained for
					 California income or franchise tax purposes and wage reporting purposes will be
					 adequate substantiation for the JSF Wage Credit.
1. New
						section filed 1-23-2003; operative 2-22-2003 (Register 2003, No.
						4).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  23636,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23636-9 - Miscellaneous Provisions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Miscellaneous Provisions -- (See Regulation 23636-0 for
						Table of Contents.)
(a) Effective
					 Dates of the JSF Wage Credit. The JSF Wage Credit shall cease to be effective
					 on December 1, 2006; however, any unused credit may be carried forward, as
					 provided in Revenue and Taxation Code section
					 23637,
					 subsection (g), and this regulation.
(b) Enterprise Zone Hiring Credit. Under
					 Revenue and Taxation Code sections
					 23636
					 and
					 23622.7,
					 a qualified taxpayer that also operates in an Enterprise Zone may claim both
					 the JSF Wage Credit and the Enterprise Zone hiring credit for wages paid to an
					 employee to the extent that all of the requirements of each of those sections
					 are satisfied.
1. New
						section filed 1-23-2003; operative 2-22-2003 (Register 2003, No.
						4).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  23636,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23637-0 - Table of Contents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Table of Contents -- Regulation Sections
						23637-1 through
						23637-11
Section 23637-1.
The Joint Strike
					 Fighter (JSF) Property Credit.
(a) In
					 General
(b) Cross
					 References
(c) General
					 References
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23637-2 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Definitions -- (See Regulation 23637-0 for Table of
						Contents.) For purposes of Regulations 23637-1 through 23637-11, inclusive, the
						following definitions shall apply:
(a)
					 Capitalized Labor. The term "capitalized labor" shall mean all costs of labor
					 that are direct costs, as that term is used in Internal Revenue Code section
					 263 A and defined in the
					 regulations thereunder, that can be identified or associated with and are
					 properly allocable to the construction, modification, or installation of
					 specific items of qualified property. For this purpose, labor encompasses
					 full-time and part-time employees, as well as contract employees and
					 independent contractors.
(1) Direct labor
					 costs shall include all elements of compensation, such as basic compensation,
					 overtime pay, vacation pay, holiday pay, sick leave pay (other than payments
					 pursuant to a wage continuation plan under Internal Revenue Code section
					 105(d) as it
					 existed prior to its repeal in 1983), shift differential, payroll taxes, and
					 payments to a supplemental unemployment benefit plan, but shall not include any
					 indirect labor costs.
(2) Indirect
					 labor costs are costs that cannot be identified or associated with the
					 construction, modification, or installation of specific items of qualified
					 property. Indirect labor costs include, but are not limited to, training costs,
					 officers' compensation, pension and other related costs, and employee benefit
					 expenses (including payments pursuant to a wage continuation plan under
					 Internal Revenue Code section
					 105(d) as it
					 existed prior to its repeal in 1983).
(3) In determining whether direct costs of
					 labor are properly allocable to the construction, modification, or installation
					 of a specific item of qualified property, the qualified taxpayer shall be
					 required to use the same method of allocation for California income and
					 franchise tax purposes that the taxpayer used for federal income tax purposes
					 under the uniform capitalization allocation rules specified in Treasury
					 Regulation section
					 1.263 A-1 (as in effect on the
					 date Regulation 23637-2 is effective).
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23637-8 - Recapture Rules

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Recapture Rules -- (See Regulation
						23637-0
						for Table of Contents.)
(a) In
					 General. The JSF Property Credit shall not be allowed or shall be recaptured
					 under the rules of this regulation in any case where a disposition occurs
					 within one year or less of the date the qualified property is first placed in
					 service in this state.
(b)
					 Disposition. For purposes of this regulation, the term "disposition" shall
					 include any of the following events:
(1)
					 Removal of the qualified property from this state;
(2) Disposition of the qualified property to
					 any party that is not a related party (as defined in Internal Revenue Code
					 sections 267,
					 318 or
					 707), whether by sale, gift, a
					 transfer upon the foreclosure of a security interest, or otherwise;
(3) Use of the qualified property by the
					 qualified taxpayer primarily in any non-qualified activity; or
(4) Acquisition by a lessee (or any party
					 related to the lessee under Internal Revenue Code sections
					 267 or
					 318) of qualified property that is
					 being leased by such lessee. However, the term "disposition" shall not include
					 any of the following events:
(A) a mere
					 transfer of legal title to a creditor upon creation of a security
					 interest;
(B) a transfer by a
					 qualified taxpayer of legal title to qualified property to a lessor where the
					 lessor is not treated as the tax owner of such property and the lease is
					 properly characterized as a financing transaction under California income tax
					 principles;
(C) any election by a C
					 corporation to become an S corporation; or
(D) any destruction of qualified property
					 which qualifies as an involuntary conversion under Internal Revenue Code
					 section 1033.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23637-9 - JSF Property Credit Carryforwards

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
JSF Property Credit Carryforwards -- (See Regulation
						23637-0 for Table of Contents.)
(a) In
					 General. In any case where the JSF Property Credit exceeds the "tax," the
					 excess may be carried forward to reduce the "tax" for the eight taxable years
					 succeeding the taxable year for which the JSF Property Credit is allowed, if
					 necessary, until the credit is exhausted.
(b) Carryforwards for Pass-Through Entities.
					 In the case of any JSF Property Credit allowed to a pass-through entity, the
					 determination of the applicable carryover period for any JSF Property Credit
					 required to be carried forward shall be made at the pass-through entity
					 level.
(c) Carryforwards Permitted
					 After Sunset. For taxable years commencing on or after January 1, 2006, any
					 unused JSF Property Credit may be carried forward, as provided above, until the
					 unused JSF Property Credit is exhausted.
1. New
						section filed 1-23-2003; operative 2-22-2003 (Register 2003, No.
						4).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  23637,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23637-11 - Miscellaneous Provisions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Miscellaneous Provisions -- (See Regulation
						23637-0
						for Table of Contents.)
(a) Effective
					 Dates of the JSF Property Credit. The JSF Property Credit shall cease to be
					 effective on December 1, 2006; however, any unused credit may be carried
					 forward, as provided in Revenue and Taxation Code section
					 23637,
					 subsection (g), and Regulation 23637-9.
(b) Manufacturers' Investment Credit (MIC).
					 Under Revenue and Taxation Code section
					 23637, in any case where a credit
					 would be allowed for qualified property under both that provision and the
					 Manufacturers' Investment Credit (MIC) provided in Revenue and Taxation Code
					 section
					 23649,
					 a qualified taxpayer may claim either the MIC credit or the JSF Property
					 Credit. Thus, a qualified taxpayer may not claim both the JSF Property Credit
					 and the MIC for the costs of the same qualified property.
(c) Enterprise Zone Sales or Use Tax Credit.
					 Under Revenue and Taxation Code sections
					 23637
					 and
					 23612.2,
					 a qualified taxpayer that also operates in an Enterprise Zone may claim both
					 the JSF Property Credit and the Enterprise Zone sales or use tax credit on the
					 same item of qualified property to the extent that all of the requirements of
					 each of those sections are satisfied.
1. New
						section filed 1-23-2003; operative 2-22-2003 (Register 2003, No.
						4).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  23637,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23649-0 - Table of Contents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Regulation Sections
						23649-1 Through
						23649-11
§ 23649-1.
The Manufacturers'
					 Investment Credit (MIC)
(a) In
					 General
(b) MIC for Qualified Costs
					 Paid or Incurred in 1994 Must Be Claimed on Qualified Taxpayer's Return for
					 First Income Year Beginning on or After January 1, 1995
(c) Cross References
(d) General References
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23649-2 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(See Section
						23649-0 for Table of Contents.)
						For purposes of Regulations 23649-1 through 23649-11, inclusive, the following
						definitions shall apply:
(a)
					 Biopharmaceutical Activities. The term "biopharmaceutical activities" shall
					 mean those activities, including research, development, production, or
					 provision of biotechnology, which use organisms or materials derived from
					 organisms, and their cellular, subcellular or molecular components, in order to
					 provide pharmaceutical products or processes for human or animal therapeutics,
					 diagnostics, medical, pharmaceutical, nutritional, or other health-related
					 purposes. Biopharmaceutical activities use recombinant DNA technology and
					 living organisms to make commercial products, as opposed to pharmaceutical
					 activities which make use of chemical compounds to produce commercial
					 products.
(b)
Capitalized
					 Labor
. The term "capitalized labor" shall mean all direct costs of
					 labor that can be identified or associated with and are properly allocable to
					 the construction, modification, or installation of specific items of qualified
					 property. For this purpose, labor encompasses full-time and part-time
					 employees, as well as contract employees and independent contractors.
(1) Direct labor costs shall include all
					 elements of compensation, such as basic compensation, overtime pay, vacation
					 pay, holiday pay, sick leave pay (other than payments pursuant to a wage
					 continuation plan under Internal Revenue Code Section
					 105(d) as it
					 existed prior to its repeal in 1983), shift differential, payroll taxes, and
					 payments to a supplemental unemployment benefit plan, but shall not include any
					 indirect labor costs.
(2) Indirect
					 labor costs are costs that cannot be identified or associated with the
					 construction, modification, or installation of specific items of qualified
					 property. Indirect labor costs include, but are not limited to, training costs,
					 officers' compensation, pension and other related costs, and employee benefit
					 expenses (including payments pursuant to a wage continuation plan under
					 Internal Revenue Code Section
					 105(d) as it
					 existed prior to its repeal in 1983).
(3) In determining whether direct costs of
					 labor are properly allocable to the construction, modification, or installation
					 of a specific item of qualified property, the qualified taxpayer shall be
					 required to use the same method of allocation that is required to be used by
					 the qualified taxpayer for California income or franchise tax purposes under
					 the uniform capitalization allocation rules specified in Treasury Regulation
					 Section 1.263 A-1 (as in effect on the
					 date Regulation 23649-2 is effective).
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23649-8 - Recapture Rules

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(See Section
						23649-0 for Table of
						Contents.)
(a)
In
					 General.
The MIC shall not be allowed or shall be recaptured under the
					 rules of this regulation in any case where a disposition occurs within one year
					 or less of the date the qualified property is first placed in service in this
					 state.
(b)
Disposition.
For purposes of this regulation, the term
					 "disposition" shall include any of the following events:
(1) Removal of the qualified property from
					 this state;
(2) Disposition of the
					 qualified property to any party that is not a related party (as defined in
					 Internal Revenue Code Sections
					 267,
					 318 or
					 707), whether by sale, gift, a
					 transfer upon the foreclosure of a security interest, or otherwise;
(3) Use of the qualified property by the
					 qualified taxpayer primarily in any non-qualified activity; or
(4) Acquisition by a lessee (or any party
					 related to the lessee under Internal Revenue Code Sections
					 267 or
					 318) of qualified property that is
					 being leased by such lessee.
However, the term "disposition" shall not include any of
						the following events:
A. a mere
					 transfer of legal title to a creditor upon creation of a security
					 interest;
B. a transfer by a
					 qualified taxpayer of legal title to qualified property to a lessor where the
					 lessor is not treated as the tax owner of such property and the lease is
					 properly characterized as a financing transaction under California income tax
					 principles;
C. any election by a C
					 corporation to become an S corporation; or
D. any destruction of qualified property
					 which qualifies as an involuntary conversion under Section
					 1033 of the Internal Revenue
					 Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23649-9 - MIC Carryforwards

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(See Section
						23649-0 for Table of
						Contents.)
(a)
In
					 General.
In any case where the MIC exceeds the "tax," the excess may
					 be carried forward to reduce the "tax" in the following year, and succeeding
					 years, as follows:
(1) Except as provided in
					 subsection (a)(2) of this regulation and subsection (c) of this regulation, for
					 the eight income years succeeding the income year for which the MIC is allowed,
					 if necessary, until the credit is exhausted.
(2) Except as provided in subsection (c) of
					 this regulation, in the case of any small business, for the ten income years
					 succeeding the income year for which the MIC is allowed, if necessary, until
					 the credit is exhausted.
Except as provided in this regulation, the amount of MIC
						that may be carried over to the following year, and succeeding years, including
						carryforwards from any and all prior years, is not
						limited.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 3 - Corporation Income Tax › Article 3 - Tax Credits › Section 23663-5 - Special Rules

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Special Rules. For purposes of Regulations
						23663-2
						through
						23663-5,
						inclusive, the following special rules shall apply:
(a) Credits Which Are the Subject of
					 Defective Assignments.
(1) No assignor,
					 assignee, or any other taxpayer shall claim, assign or otherwise benefit from a
					 credit which was assigned in a defective assignment, unless that credit is
					 allocated to the assignor or assignee on an adjustment date pursuant to
					 Regulations
					 23663-2
					 through
					 23663-5.
(2) Any assignment of an amount of identical
					 credits by the assignor in a taxable year after the taxable year in which the
					 defective assignment of that amount of identical credits was made, and before
					 the adjustment date when an adjustment is made under Regulations
					 23663-2
					 through
					 23663-5,
					 shall be invalid and may not be corrected or adjusted under Regulations
					 23663-2
					 through
					 23663-5.
(3) In any case where an assignee claims a
					 credit in a closed year that was the subject of an invalid assignment under
					 paragraph (2), then the assignor's credits shall be reduced in the same manner
					 as set forth in Regulation
					 23663-3(c).
(4) Example.
Example 1: X reported that it has $200 of 2010 R & D
						credits. On its original tax return for the 2010 taxable year, X elects to
						assign $200 of the 2010 R & D credits. However, X's assignment lists the
						name of Y but the FEIN of Z. X discovers that the 2010 assignment was a
						defective assignment, and in the 2013 taxable year X elects to assign the $200
						of the 2010 R & D credits to T. In the 2014 taxable year, X, Y and Z
						request and are allowed application of the rules under Regulation
						23663-3
						so that the $200 of 2010 R & D credits assigned in the 2010 defective
						assignment are allocated to X as of the date of the defective assignment.
						However, pursuant to paragraph (2) the 2013 assignment of $200 of 2010 R &
						D credits to T is an invalid assignment because the assignment was made before
						the adjustment date in the 2014 taxable year. Therefore, under this regulation,
						X is treated as having retained $200 of 2010 R & D credits, and Y, Z and T
						are treated as having received no 2010 R & D
						credits.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701 - Exemption from Taxation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
(1) In General Revenue and Taxation Code
					 section
					 23701
					 provides an exemption from franchise or corporate income tax for organizations
					 organized and operated for nonprofit purposes within the provisions of a
					 specific section of Article 1, Chapter 4, or are subject to Revenue and
					 Taxation Code sections
					 23701h
					 or
					 23701x
					 (relating to certain title-holding companies), if:
(A) An application for exemption is submitted
					 in the form prescribed by the Franchise Tax Board;
(B) A filing fee of twenty-five dollars ($25)
					 is paid with each application for exemption filed with the Franchise Tax Board
					 after June 30, 1983; and
(C) The
					 Franchise Tax Board issues a determination exempting the organization from
					 tax.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701a - Labor, Agricultural, and Horticultural Organizations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No
						37.
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701b - Fraternal Beneficiary Societies. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701c - Cemetery Companies and Crematoriums. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701d - Religious, Charitable, Scientific, Literary, Educational Organizations and Prevention of Cruelty to Children or Animals. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701e - Business Leagues. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701f - Dedication of Assets

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The assets of organizations desiring exemption under
						Section 23701 f must be irrevocably
						dedicated to an exempt purpose. The dedication must be in the articles of
						incorporation.
(a) All organizations
					 desiring exemption under Section
					 23701 f (except a local
					 association of employees) must provide in their articles of incorporation that
					 their assets are irrevocably dedicated to social welfare purposes. The
					 dedication must cover any income of the organization (including dues, fees or
					 assessments or services) or assets purchased with such income. That in case of
					 dissolution the assets of the organization will be distributed to an
					 organization organized and operated for social welfare purposes and exempt
					 under Section
					 501(c)(3) or
					 501(c)(4) of the
					 Internal Revenue Code. A sample irrevocable dedication-dissolution clause is as
					 follows:
"The assets of this corporation are irrevocably dedicated
						to social welfare purposes and no part of the profits shall ever inure to the
						benefit of a director, officer member or the benefit of any private shareholder
						or individual. On the dissolution or winding up of this corporation, its assets
						remaining after payment of, or provision for the payment of, all debts and
						liabilities of this corporation shall be distributed to a nonprofit
						organization that is organized and operated exclusively for social welfare
						purposes and that has established its tax exempt status under Section
						501(c)(3) or
						501(c)(4) of the
						Internal Revenue Code."
(b)
					 A local association of employees must provide in their articles of
					 incorporation that in case of dissolution their assets will be distributed for
					 charitable, educational or "public recreational purposes." The deduction should
					 normally be to an organization which has established its exempt status under
					 Section 501(c)(3) of the
					 Internal Revenue Code.
(c) Lack of
					 a dedication clause in the articles will not be made the sole basis for
					 revocation of an exempt determination made by the Franchise Tax Board prior to
					 1972.
1.
						Amendment filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  23701(f),
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701g - Social and Recreation Organizations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701h - Title Holding Corporations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701i - Voluntary Employees' Beneficiary Association. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37)
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701k - Religious or Apostolic Associations or Corporations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701l - Fraternal Society. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701m - Diversified Management Corporations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 8-25-88; operative 9-24-88 (Register 88, No.
						36).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  23701m,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701n(1) - Supplemental Unemployment Benefit Trust. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701n(2) - General Rules. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422 Revenue and Taxation
						  Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701n(3) - Relation to Other Sections of the Code. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422 Revenue and Taxation
						  Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701r - Support of Political Candidates. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23701s - Certain Funded Pension Trusts. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23702 - Feeder Organizations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23703 - Loss of Exemption for Failure to Register or File Periodic Reports with Attorney General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Any
					 organization which receives or holds assets for charitable purposes must
					 normally register with the Attorney General (Registry of Charitable Trusts)
					 within six months after the receipt of assets for charitable purposes. Also the
					 above described organization must file an annual report with the Registry of
					 Charitable Trusts.
(b) Failure to
					 register or file the annual report may cause the Attorney General (Registry of
					 Charitable Trusts) to notify this department to disallow the exemption for the
					 period involved. When such a notice is received, the department will notify the
					 organization and make an assessment of the minimum tax, as provided by Section
					 23153, for each year or part
					 thereof which is involved. Failure to pay the tax will result in the suspension
					 (termination of the corporate status) or the current revocation of exempt
					 status.
(c) To be reinstated, the
					 organization must satisfy the requirements of the Attorney General and pay the
					 taxes assessed. This department must receive notice from the Attorney General
					 (Registry of Charitable Trusts) that the organization is now in compliance with
					 these requirements. Also, if suspension or current revocation of exempt status
					 occurred because the minimum tax was not paid, the organization must comply
					 with the requirements of Section
					 23776 or
					 23778.
1.
						Amendment of subsection (b) filed 8-25-88; operative 9-24-88 (Register 88, No.
						36).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  23703,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23707 - Termination of a Private Foundation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Section
					 23707 states that a termination of
					 a private foundation under federal law is a valid termination under state law.
					 Also a termination by the State Attorney General is a valid termination for
					 Franchise Tax Board purposes.
(1) Where a
					 private foundation receives notice that its status as a private foundation has
					 been changed or terminated, a copy of any such notice should be forwarded by
					 the private foundation to the Franchise Tax Board within 60 days.
(2) Where a private foundation terminates its
					 status as a private foundation by distribution of all its assets to a properly
					 qualified organization, this information should be indicated on its final
					 annual information report, submitted on or before the 15th day of the fifth
					 month following such termination.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23708 - Classification as a Private Foundation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Any organization that has been classified
					 as a private foundation or informed that it will be treated as a private
					 foundation under federal law must inform the Franchise Tax Board of this
					 classification on its annual information return (Form 199).
(b) Section
					 23708 as well as Corporations Code
					 Section
					 5260 and
					 impose federal restrictions on private foundations. The enforcement of these
					 restrictions is considered the responsibility of the Attorney General working
					 in conjunction with the Internal Revenue Service. Therefore, if violators of
					 the above restrictions are discovered by the Franchise Tax Board they will be
					 called to the attention of the Attorney General rather than revoking the
					 exemption as might otherwise be proper.
1.
						Amendment filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  23708,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 1 - Exemptions from Franchise or Corporate Tax › Section 23709 - Definition of a Private Foundation. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23732-1 - Definition. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Renumbering and amendment of Section
						23732(a)(1) to
						Section 23732-1 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
2. Change without
						regulatory effect repealing Section
						23732-1 filed 9-19-88 (Register
						88, No. 40).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  23732,
						  Revenue and Taxation Code.