Engineering Company Sues California for $1.67 Million Tax Refund

Nebraska construction and engineering company Kiewit Corp. sued the California Franchise Tax Board for a franchise tax refund, contesting the state’s denial of a deduction for dividends.

Dividends of $1 billion and $75.7 million paid by a Kiewit subsidiary to its subsidiary are fully deductible because they were derived from earnings and profits generated through a construction project, Kiewit told the California Superior Court in San Francisco in a complaint filed Feb. 1.

“Construction E&P retains its character as it is paid up through a chain of corporations, just as Unitary E&P retains its character as it is paid up ...