The California Franchise Tax Board (FTB) released guidance on the Pass-Through Entity (PTE) Elective Tax, noting that for taxable years beginning on or after Jan. 1, 2021, and before Jan. 1, 2026, qualifying PTEs may annually elect to pay an entity level state tax on income. Qualified taxpayers receive a credit for their share of the entity level tax, reducing their California personal income tax. [Cal. Franchise Tax Bd., Pass-Through Entity Elective Tax, 01/01/25]
This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.
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