If you are like most of the readers of this blog, you follow California tax law very closely, and you will be very interested to know thatAB 1452 describes the new tax code changes that appear like they will be taking effect shortly.   If you want to know how this affects you or your clients, you can call us directly at (314) 550-1666 and we can help navigate you through how we can help you take full advantage of your available tax credits.  The official AB 1452 quote is below:

3. Limit business tax credits in 2008-09 and 2009-10: Limits the amounts of business incentive tax credits that can be used to reduce tax liability in 2008-09 and 2009-10. Use of credits will be limited to 50 percent of the taxpayer’s liability, and this increases General Fund revenue by $890 million in 2008-09 and $415 million in 2009-10. Taxpayers with net business income of less than $500,000 will be exempted from this change. Various tax credits are included in these amendments, including the Research and Development credit, the Enterprise Zone credit, and Low-Income Housing credits. Beginning in 2010, these amendments liberalize the use of credits such that businesses could assign credits to any affiliated corporation. This increases the use of tax credits in 2010, and thereafter, resulting in a loss of General Fund revenues.

Tags: 2008, AB 1452, business incentive, general fund, reduce tax liability, state of california, tax code changes, tax credits, tax law

This entry was posted on Tuesday, September 16th, 2008 at 3:36 am and is filed under Tax News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.