Rev. & Tax. Code, § 23696 · Chapter 3.5. Tax Credits
Rev. & Tax. Code, § 23696
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) Notwithstanding anything to the contrary in Sections 23685 and 23695, and in Section 23698, as that section read on January 1, 2025, a credit, or any portion thereof, allowed under Section 23685, 23695, or 23698 and generated by a disregarded single member limited liability company shall not be ineligible for assignment to a corporation that, directly or indirectly, owns the disregarded single member limited liability company, or to an affiliated corporation of that corporation, based on either of the following:
(1) The disregarded single member limited liability company is not considered a qualified taxpayer, as defined in subdivision (b) of Sections 23685 and 23695 and subdivision (b) of 23698, as that section read on January 1, 2025.
(2) The amount of credit allowed under Section 23685, 23695, or 23698 does not exceed the tax liability of the disregarded single member limited liability company for purposes of paragraph (1) of subdivision (c) of Sections 23685 or 23695 or paragraph (1) of subdivision (c) of Section 23698, as that section read on January 1, 2025, respectively.
(b) For purposes of this section, “affiliated corporation” has the same meaning as defined in paragraph (1) of subdivision (c) of Sections 23685 and 23695 and paragraph (1) of subdivision (c) of Section 23698, as that section read on January 1, 2025.
(c) This section shall apply only when the credits affected by this section were assigned and claimed on a tax return timely filed with the Franchise Tax Board for taxable years beginning on or before January 1, 2025.
Notes and commentary — not statutory text
History
Amended by Stats. 2025, Ch. 462, Sec. 4. (SB 863) Effective January 1, 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=23696.
- Text hash
- sha256 d605d572c5dfc50a4156c0e376db342fa439332cdef8eb22540afa5aa9d3e07d
- 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, § 23685Printed as Section 23685, 23695, or 23698 | Sections 23685 and 23695 | Sections 23685 or 23695
- Rev. & Tax. Code, § 23695Printed as Section 23685, 23695, or 23698 | Sections 23685 and 23695 | Sections 23685 or 23695
- Rev. & Tax. Code, § 23698Printed as Section 23685, 23695, or 23698 | Section 23698
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