Rev. & Tax. Code, § 24344 · Article 1. Deductions
Rev. & Tax. Code, § 24344
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) Section 163 of the Internal Revenue Code, relating to interest, shall apply, except as otherwise provided.
(b) If income of the taxpayer which is derived from or attributable to sources within this state is determined pursuant to Section 25101 or 25110, the interest deductible shall be an amount equal to interest income subject to apportionment by formula, plus the amount, if any, by which the balance of interest expense exceeds interest and dividend income (except dividends deductible under Section 24402 and dividends subject to the deductions provided for in Section 24411 to the extent of those deductions) not subject to apportionment by formula. Interest expense not included in the preceding sentence shall be directly offset against interest and dividend income (except dividends deductible under Section 24402 and dividends subject to the deductions provided for in Section 24411 to the extent of those deductions) not subject to apportionment by formula.
(c) (1) Notwithstanding subdivision (b) and subject to paragraph (2), interest expense allowable under Section 163 of the Internal Revenue Code that is incurred for purposes of foreign investments may be offset against dividends deductible under Section 24411.
(2) For taxable years beginning on or after January 1, 1997, the amount of interest computed pursuant to paragraph (1) shall be multiplied by the same percentage used to determine the dividend deduction under Section 24411 to determine that amount of interest that may be offset as provided in paragraph (1).
(d) Section 7210(b) of Public Law 101-239, relating to the effective date for limitation on deduction for certain interest paid to a related person, shall apply.
(e) Section 163(j) of the Internal Revenue Code, relating to the limitation on business interest, shall not apply.
Notes and commentary — not statutory text
History
Amended by Stats. 2025, Ch. 231, Sec. 89. (SB 711) Effective October 1, 2025.
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=24344.
- Text hash
- sha256 c8557e0e070eb1e03fe4fec86a784d726081bd769f0a5e66e80c13dd900b0c43
- 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.
Cited by 5 provisions
Provisions in this library whose text cites Rev. & Tax. Code, § 24344. Each shows the citation as that text prints it.
Revenue and Taxation Code
- Rev. & Tax. Code, § 23456Printed as Sections 24344 and 24425
- Rev. & Tax. Code, § 24414Printed as Sections 24344, 24345, 24347, and 24365
- Rev. & Tax. Code, § 24436.5Printed as Section 24343, 24344, 24345, or 24349
- Rev. & Tax. Code, § 24448Printed as Section 24343, 24344, 24345, 24349, or 24354.2
- Rev. & Tax. Code, § 25106Printed as Section 24344
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