California FTB Releases 2022 Instructions for Form FTB 3804-CR, Pass-Through Entity Elective Tax Credit

The California Franchise Tax Board (FTB) Aug. 1 released instructions regarding 2022 Form FTB 3804-CR, Pass-Through Entity Elective Tax Credit, for individual income tax purposes. A credit against the personal income tax is allowed to a pass-through entity’s partner or shareholder based on the taxpayer’s pro rata share. For tax year 2022, the credit limitation has been repealed. For taxable years beginning on or after Jan. 1, 2021, and before Jan. 1, 2026, California law allows an entity taxed as a partnership or an S corporation to annually elect to pay an elective tax at a rate of 9.3 percent ...