Corporate tax: exclusions: qualifying shipping activities.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill creates an exclusion from California corporate tax income for qualifying shipping activities conducted by corporations or groups that make a specific election under federal tax law. It establishes rules for depreciation and basis of qualifying vessels, and provides a mechanism for nonrecognition of gain when a replacement vessel is acquired. The bill takes effect immediately.
Key provisions
- Exclusion of income from ‘qualifying shipping activities’ for electing corporations and groups.
- Specific rules for depreciation and basis of ‘qualifying vessels’.
- Nonrecognition of gain upon the sale of a qualifying vessel if a replacement vessel is acquired within a specified timeframe.
- Definition of ‘electing corporation’ and ‘electing group’ based on Internal Revenue Code definitions.
- Exclusion of losses, deductions, and credits related to qualifying shipping activities (except interest expense).
- Disallowance of interest expense in proportion to other deductions.
- Amendment to the Revenue and Taxation Code to align with federal tax law regarding shipping activities.
Who is affected
- Corporations
- Shipping companies
- Taxpayers
- California State Government
- Businesses involved in international shipping
Notable changes
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
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