Rev. & Tax. Code, § 23036.6 · Article 2. Definitions
Rev. & Tax. Code, § 23036.6
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2030, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23608), including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the “tax,” as defined in Section 23036, by more than 70 percent or five million dollars ($5,000,000), whichever is greater.
(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2030, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23608), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of “tax,” as defined in Section 23036, of all members of the combined report by more than 70 percent or five million dollars ($5,000,000), whichever is greater.
(c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, or 23698.1 against qualified sales and use tax, as defined in Section 6902.5, are not included in the limitation set forth in subdivision (a) or (b).
(d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing).
(e) Any annual refundable credit amount included in an election pursuant to Section 23036.5 is not included in the limitation set forth in subdivision (a) or (b).
(f) If an election is made pursuant to subdivision (k) of Section 23698.1, both the credit allowed against the “tax” under clause (i) of subparagraph (A) of paragraph (3) of subdivision (k) of Section 23698.1 and the annual refundable amount calculated under subdivision (k) of Section 23698.1 shall not be included in the limitation set forth in subdivisions (a) and (b) of this section.
(g) Any credit, or portion thereof, sold pursuant to paragraph (1) of subdivision (c) of Section 17053.95, 17053.98, or 17053.98.1, paragraph (3) of subdivision (c) of Section 23695 or 23698, or paragraph (2) of subdivision (c) of Section 23698.1, is not included in the limitation set forth in subdivision (a) or (b).
(h) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part.
(i) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.
Notes and commentary — not statutory text
History
Amended by Stats. 2026, Ch. 344, Sec. 7. (SB 186) Effective September 19, 2026.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=23036.6.
- Text hash
- sha256 857c1c167d2c6ec4a5f3f7cf421bc927e5a9bfd7afdb14eb397a0903ea35f77c
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Revenue and Taxation Code
- Rev. & Tax. Code, § 6902.5Printed as Section 6902.5
- Rev. & Tax. Code, § 17053.85Printed as Section 17053.85, 17053.95, 17053.98, 17053.98
- Rev. & Tax. Code, § 17053.95Printed as Section 17053.85, 17053.95, 17053.98, 17053.98 | Section 17053.95, 17053.98, or 17053.98
- Rev. & Tax. Code, § 17053.98Printed as Section 17053.85, 17053.95, 17053.98, 17053.98 | Section 17053.95, 17053.98, or 17053.98
- Rev. & Tax. Code, div. 2, pt. 10.2ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWSPrinted as Part 10.2 (commencing with Section 18401)
- Rev. & Tax. Code, § 23036Printed as Section 23036
- Rev. & Tax. Code, § 23036.5Printed as Section 23036.5
- Rev. & Tax. Code, div. 2, pt. 11, ch. 3.5Tax CreditsPrinted as Chapter 3.5 (commencing with Section 23608)
- Rev. & Tax. Code, § 23610.5Printed as Section 23610.5
- Rev. & Tax. Code, § 23695Printed as Section 23695 or 23698
- Rev. & Tax. Code, § 23698Printed as Section 23695 or 23698
- Rev. & Tax. Code, § 23698.1Printed as Section 23698.1
- Rev. & Tax. Code, § 25101Printed as Section 25101 or 25110
- Rev. & Tax. Code, § 25101.15Printed as Section 25101.15
- Rev. & Tax. Code, § 25110Printed as Section 25101 or 25110
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