California Enacts Tax Legislation, Extends Pass-Through Entity Elective Tax

The California Governor signed tax legislation. The law includes: 1) extending the pass-through entity elective tax for taxable years beginning on or after Jan. 1, 2026, and before Jan. 1, 2031; 2) increasing the aggregate amount of the motion picture credit that may be allocated for a fiscal year to $750 million; and 3) for apportionment of corporate income tax removing banking and financial business activities from the definition of qualified business activities for purposes of apportionment for taxable years beginning on or after Jan. 1, 2025. The law took effect on June 27. [S.B. 132, enacted 06/27/25]

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