State Codes and Statutes

Statutes > California > Rtc > 18001-18011

REVENUE AND TAXATION CODE
SECTION 18001-18011



18001.  (a) Subject to the following conditions, residents shall be
allowed a credit against the "net tax" (as defined by Section 17039)
for net income taxes imposed by and paid to another state (not
including any preference, alternative, or minimum tax comparable to
the tax imposed by Section 17062) on income taxable under this part:
   (1) The credit shall be allowed only for taxes paid to the other
state (not including any preference, alternative, or minimum tax
comparable to the tax imposed by Section 17062) on income derived
from sources within that state which is taxable under its laws
irrespective of the residence or domicile of the recipient.
   This paragraph shall not apply to residents to whom subdivision
(b) of Section 17014 applies.
   (2) The credit shall not be allowed if the other state allows
residents of this state a credit against the taxes imposed by that
state (not including any preference, alternative, or minimum tax
comparable to the tax imposed by Section 17062) for "net tax" (as
defined by Section 17039) paid or payable under this part.
   (3) The credit shall not exceed the proportion of the "net tax"
(as defined by Section 17039) payable under this part as the income
subject to tax in the other state (not including any preference,
alternative, or minimum tax comparable to the tax imposed by Section
17062) and also taxable under this part bears to the taxpayer's
entire income upon which the "net tax" (as defined by Section 17039)
is imposed by this part.
   (4) No credit shall be allowed under this section for any tax
imposed by Section 17062.
   (b) For purposes of this section, the amount of "net income taxes"
paid to another state shall include the taxpayer's pro rata share of
any taxes on, or according to, or measured by, income or profits
paid or accrued, which were paid by an S corporation, as provided by
Section 18006.
   (c) For purposes of this section, "income derived from sources
within that state" shall be determined by applying the nonresident
sourcing rules for determining income from sources within this state,
as specified in Chapter 11 (commencing with Section 17951), and the
regulations thereunder.



18002.  (a) Subject to the following conditions, nonresidents shall
be allowed a credit against the "net tax" (as defined by Section
17039) for net income taxes imposed by and paid to the state of
residence (not including any preference, alternative, or minimum tax
comparable to the tax imposed by Section 17062) on income taxable
under this part:
   (1) The credit shall be allowed only if the state of residence
either does not tax income of residents of this state derived from
sources within that state or allows residents of this state a credit
against the taxes imposed by that state on such income for "net tax"
(as defined by Section 17039) paid or payable thereon under this
part.
   (2) The credit shall not be allowed for taxes paid to a state
which allows its residents a credit against the taxes imposed by that
state for "net tax" (as defined by Section 17039) paid or payable
under this part irrespective of whether its residents are allowed a
credit against the taxes imposed by this part for income taxes paid
to that state.
   (3) Credit shall be allowed only for such proportion of the taxes
paid to the state of residence (not including any preference,
alternative, or minimum tax comparable to the tax imposed by Section
17062) as the income taxable under this part and also subject to tax
in the state of residence bears to the entire income upon which the
taxes paid to the state of residence are imposed.
   (4) The credit shall not exceed such proportion of the "net tax"
(as defined by Section 17039) payable under this part as the income
subject to tax in the state of residence and also taxable under this
part bears to the entire income taxable under this part.
   (5) No credit shall be allowed under this section for any tax
imposed by Section 17062.
   (b)  For purposes of this section, the amount of "net income taxes"
paid to another state shall include the taxpayer's pro rata share of
any taxes on, or according to, or measured by, income or profits
paid or accrued, which were paid by an S corporation, as provided by
Section 18006.


18003.  For the purpose of this chapter an estate or trust is
considered a resident of the state which taxes the income of the
estate or trust irrespective of whether the income is derived from
sources within that state.


18004.  If an estate or trust is a resident of this State and also a
resident of another state, it shall, notwithstanding the limitations
contained in Sections 18001 and 18002, be allowed a credit against
the taxes imposed by this part for net income taxes imposed by and
paid to the other state, subject to the following conditions:
   (a) Credit shall be allowed only for such proportion of the taxes
paid to the other state as the income taxable under this part and
also subject to tax in the other state bears to the entire income
upon which the taxes paid to the other state are imposed.
   (b) The credit shall not exceed such proportion of the tax payable
under this part as the income subject to tax in the other state and
also taxable under this part bears to the entire income taxable under
this part.



18005.  A resident beneficiary of an estate or trust who is taxable
on the income of the estate or trust under Chapter 9 of this part
shall, subject to the following conditions, be allowed a credit
against the taxes imposed by this part on such income for net income
taxes paid by the estate or trust to another state on such income:
   (a) Credit shall be allowed only for such proportion of the tax
paid to the other state by the estate or trust as the income of the
estate or trust which is taxable to the beneficiary under this part
and also taxed to the estate or trust in the other state bears to the
entire income of the estate or trust upon which the taxes paid to
the other state were imposed.
   (b) The credit shall not exceed such proportion of the tax payable
under this part as the income of the estate or trust which is
taxable to the beneficiary under this part and also taxed to the
estate or trust in the other state bears to the beneficiary's entire
income upon which the tax is imposed by this part.



18006.  For purposes of determining a credit under Section 18001
(relating to residents) or Section 18002 (relating to nonresidents),
both of the following apply:
   (a) A member of a partnership is allowed to treat his, her, or its
pro rata share of net income taxes paid to another state by the
partnership as if those taxes had been paid directly by the partner.
   (b) (1) A shareholder of a corporation that is an S corporation
under Chapter 4.5 (commencing with Section 23800) of Part 11 is
allowed to treat his or her pro rata share of net income taxes paid
to another state by the S corporation as if those taxes had been paid
by the shareholder.
   (2) This subdivision applies only if either of the following
requirements is met:
   (A) The state imposing the tax does not allow corporations to
elect to be treated as an S corporation.
   (B) The state imposes a tax on S corporations and the corporation
referred to in paragraph (1) has elected to be treated as an S
corporation in the other state.



18007.  If any taxes paid to another state for which a taxpayer has
been allowed a credit under this chapter are at any time credited or
refunded to the taxpayer, the taxpayer shall immediately report that
fact to the Franchise Tax Board.


18008.  A tax equal to the credit allowed for the taxes credited or
refunded by the other state is due and payable from the taxpayer upon
notice and demand from the Franchise Tax Board.



18009.  Interest shall be assessed, collected and paid in the same
manner as the tax at the adjusted annual rate established pursuant to
Section 19521 from the date the credit was allowed under this part
to the date of payment.


18011.  The credit against the taxes imposed by this part for net
income taxes paid to another state shall not be allowed to any
taxpayer or any class of taxpayers if the allowance of the credit
will result in an invalid or illegal discrimination against another
taxpayer or another class of taxpayers.

State Codes and Statutes

Statutes > California > Rtc > 18001-18011

REVENUE AND TAXATION CODE
SECTION 18001-18011



18001.  (a) Subject to the following conditions, residents shall be
allowed a credit against the "net tax" (as defined by Section 17039)
for net income taxes imposed by and paid to another state (not
including any preference, alternative, or minimum tax comparable to
the tax imposed by Section 17062) on income taxable under this part:
   (1) The credit shall be allowed only for taxes paid to the other
state (not including any preference, alternative, or minimum tax
comparable to the tax imposed by Section 17062) on income derived
from sources within that state which is taxable under its laws
irrespective of the residence or domicile of the recipient.
   This paragraph shall not apply to residents to whom subdivision
(b) of Section 17014 applies.
   (2) The credit shall not be allowed if the other state allows
residents of this state a credit against the taxes imposed by that
state (not including any preference, alternative, or minimum tax
comparable to the tax imposed by Section 17062) for "net tax" (as
defined by Section 17039) paid or payable under this part.
   (3) The credit shall not exceed the proportion of the "net tax"
(as defined by Section 17039) payable under this part as the income
subject to tax in the other state (not including any preference,
alternative, or minimum tax comparable to the tax imposed by Section
17062) and also taxable under this part bears to the taxpayer's
entire income upon which the "net tax" (as defined by Section 17039)
is imposed by this part.
   (4) No credit shall be allowed under this section for any tax
imposed by Section 17062.
   (b) For purposes of this section, the amount of "net income taxes"
paid to another state shall include the taxpayer's pro rata share of
any taxes on, or according to, or measured by, income or profits
paid or accrued, which were paid by an S corporation, as provided by
Section 18006.
   (c) For purposes of this section, "income derived from sources
within that state" shall be determined by applying the nonresident
sourcing rules for determining income from sources within this state,
as specified in Chapter 11 (commencing with Section 17951), and the
regulations thereunder.



18002.  (a) Subject to the following conditions, nonresidents shall
be allowed a credit against the "net tax" (as defined by Section
17039) for net income taxes imposed by and paid to the state of
residence (not including any preference, alternative, or minimum tax
comparable to the tax imposed by Section 17062) on income taxable
under this part:
   (1) The credit shall be allowed only if the state of residence
either does not tax income of residents of this state derived from
sources within that state or allows residents of this state a credit
against the taxes imposed by that state on such income for "net tax"
(as defined by Section 17039) paid or payable thereon under this
part.
   (2) The credit shall not be allowed for taxes paid to a state
which allows its residents a credit against the taxes imposed by that
state for "net tax" (as defined by Section 17039) paid or payable
under this part irrespective of whether its residents are allowed a
credit against the taxes imposed by this part for income taxes paid
to that state.
   (3) Credit shall be allowed only for such proportion of the taxes
paid to the state of residence (not including any preference,
alternative, or minimum tax comparable to the tax imposed by Section
17062) as the income taxable under this part and also subject to tax
in the state of residence bears to the entire income upon which the
taxes paid to the state of residence are imposed.
   (4) The credit shall not exceed such proportion of the "net tax"
(as defined by Section 17039) payable under this part as the income
subject to tax in the state of residence and also taxable under this
part bears to the entire income taxable under this part.
   (5) No credit shall be allowed under this section for any tax
imposed by Section 17062.
   (b)  For purposes of this section, the amount of "net income taxes"
paid to another state shall include the taxpayer's pro rata share of
any taxes on, or according to, or measured by, income or profits
paid or accrued, which were paid by an S corporation, as provided by
Section 18006.


18003.  For the purpose of this chapter an estate or trust is
considered a resident of the state which taxes the income of the
estate or trust irrespective of whether the income is derived from
sources within that state.


18004.  If an estate or trust is a resident of this State and also a
resident of another state, it shall, notwithstanding the limitations
contained in Sections 18001 and 18002, be allowed a credit against
the taxes imposed by this part for net income taxes imposed by and
paid to the other state, subject to the following conditions:
   (a) Credit shall be allowed only for such proportion of the taxes
paid to the other state as the income taxable under this part and
also subject to tax in the other state bears to the entire income
upon which the taxes paid to the other state are imposed.
   (b) The credit shall not exceed such proportion of the tax payable
under this part as the income subject to tax in the other state and
also taxable under this part bears to the entire income taxable under
this part.



18005.  A resident beneficiary of an estate or trust who is taxable
on the income of the estate or trust under Chapter 9 of this part
shall, subject to the following conditions, be allowed a credit
against the taxes imposed by this part on such income for net income
taxes paid by the estate or trust to another state on such income:
   (a) Credit shall be allowed only for such proportion of the tax
paid to the other state by the estate or trust as the income of the
estate or trust which is taxable to the beneficiary under this part
and also taxed to the estate or trust in the other state bears to the
entire income of the estate or trust upon which the taxes paid to
the other state were imposed.
   (b) The credit shall not exceed such proportion of the tax payable
under this part as the income of the estate or trust which is
taxable to the beneficiary under this part and also taxed to the
estate or trust in the other state bears to the beneficiary's entire
income upon which the tax is imposed by this part.



18006.  For purposes of determining a credit under Section 18001
(relating to residents) or Section 18002 (relating to nonresidents),
both of the following apply:
   (a) A member of a partnership is allowed to treat his, her, or its
pro rata share of net income taxes paid to another state by the
partnership as if those taxes had been paid directly by the partner.
   (b) (1) A shareholder of a corporation that is an S corporation
under Chapter 4.5 (commencing with Section 23800) of Part 11 is
allowed to treat his or her pro rata share of net income taxes paid
to another state by the S corporation as if those taxes had been paid
by the shareholder.
   (2) This subdivision applies only if either of the following
requirements is met:
   (A) The state imposing the tax does not allow corporations to
elect to be treated as an S corporation.
   (B) The state imposes a tax on S corporations and the corporation
referred to in paragraph (1) has elected to be treated as an S
corporation in the other state.



18007.  If any taxes paid to another state for which a taxpayer has
been allowed a credit under this chapter are at any time credited or
refunded to the taxpayer, the taxpayer shall immediately report that
fact to the Franchise Tax Board.


18008.  A tax equal to the credit allowed for the taxes credited or
refunded by the other state is due and payable from the taxpayer upon
notice and demand from the Franchise Tax Board.



18009.  Interest shall be assessed, collected and paid in the same
manner as the tax at the adjusted annual rate established pursuant to
Section 19521 from the date the credit was allowed under this part
to the date of payment.


18011.  The credit against the taxes imposed by this part for net
income taxes paid to another state shall not be allowed to any
taxpayer or any class of taxpayers if the allowance of the credit
will result in an invalid or illegal discrimination against another
taxpayer or another class of taxpayers.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Rtc > 18001-18011

REVENUE AND TAXATION CODE
SECTION 18001-18011



18001.  (a) Subject to the following conditions, residents shall be
allowed a credit against the "net tax" (as defined by Section 17039)
for net income taxes imposed by and paid to another state (not
including any preference, alternative, or minimum tax comparable to
the tax imposed by Section 17062) on income taxable under this part:
   (1) The credit shall be allowed only for taxes paid to the other
state (not including any preference, alternative, or minimum tax
comparable to the tax imposed by Section 17062) on income derived
from sources within that state which is taxable under its laws
irrespective of the residence or domicile of the recipient.
   This paragraph shall not apply to residents to whom subdivision
(b) of Section 17014 applies.
   (2) The credit shall not be allowed if the other state allows
residents of this state a credit against the taxes imposed by that
state (not including any preference, alternative, or minimum tax
comparable to the tax imposed by Section 17062) for "net tax" (as
defined by Section 17039) paid or payable under this part.
   (3) The credit shall not exceed the proportion of the "net tax"
(as defined by Section 17039) payable under this part as the income
subject to tax in the other state (not including any preference,
alternative, or minimum tax comparable to the tax imposed by Section
17062) and also taxable under this part bears to the taxpayer's
entire income upon which the "net tax" (as defined by Section 17039)
is imposed by this part.
   (4) No credit shall be allowed under this section for any tax
imposed by Section 17062.
   (b) For purposes of this section, the amount of "net income taxes"
paid to another state shall include the taxpayer's pro rata share of
any taxes on, or according to, or measured by, income or profits
paid or accrued, which were paid by an S corporation, as provided by
Section 18006.
   (c) For purposes of this section, "income derived from sources
within that state" shall be determined by applying the nonresident
sourcing rules for determining income from sources within this state,
as specified in Chapter 11 (commencing with Section 17951), and the
regulations thereunder.



18002.  (a) Subject to the following conditions, nonresidents shall
be allowed a credit against the "net tax" (as defined by Section
17039) for net income taxes imposed by and paid to the state of
residence (not including any preference, alternative, or minimum tax
comparable to the tax imposed by Section 17062) on income taxable
under this part:
   (1) The credit shall be allowed only if the state of residence
either does not tax income of residents of this state derived from
sources within that state or allows residents of this state a credit
against the taxes imposed by that state on such income for "net tax"
(as defined by Section 17039) paid or payable thereon under this
part.
   (2) The credit shall not be allowed for taxes paid to a state
which allows its residents a credit against the taxes imposed by that
state for "net tax" (as defined by Section 17039) paid or payable
under this part irrespective of whether its residents are allowed a
credit against the taxes imposed by this part for income taxes paid
to that state.
   (3) Credit shall be allowed only for such proportion of the taxes
paid to the state of residence (not including any preference,
alternative, or minimum tax comparable to the tax imposed by Section
17062) as the income taxable under this part and also subject to tax
in the state of residence bears to the entire income upon which the
taxes paid to the state of residence are imposed.
   (4) The credit shall not exceed such proportion of the "net tax"
(as defined by Section 17039) payable under this part as the income
subject to tax in the state of residence and also taxable under this
part bears to the entire income taxable under this part.
   (5) No credit shall be allowed under this section for any tax
imposed by Section 17062.
   (b)  For purposes of this section, the amount of "net income taxes"
paid to another state shall include the taxpayer's pro rata share of
any taxes on, or according to, or measured by, income or profits
paid or accrued, which were paid by an S corporation, as provided by
Section 18006.


18003.  For the purpose of this chapter an estate or trust is
considered a resident of the state which taxes the income of the
estate or trust irrespective of whether the income is derived from
sources within that state.


18004.  If an estate or trust is a resident of this State and also a
resident of another state, it shall, notwithstanding the limitations
contained in Sections 18001 and 18002, be allowed a credit against
the taxes imposed by this part for net income taxes imposed by and
paid to the other state, subject to the following conditions:
   (a) Credit shall be allowed only for such proportion of the taxes
paid to the other state as the income taxable under this part and
also subject to tax in the other state bears to the entire income
upon which the taxes paid to the other state are imposed.
   (b) The credit shall not exceed such proportion of the tax payable
under this part as the income subject to tax in the other state and
also taxable under this part bears to the entire income taxable under
this part.



18005.  A resident beneficiary of an estate or trust who is taxable
on the income of the estate or trust under Chapter 9 of this part
shall, subject to the following conditions, be allowed a credit
against the taxes imposed by this part on such income for net income
taxes paid by the estate or trust to another state on such income:
   (a) Credit shall be allowed only for such proportion of the tax
paid to the other state by the estate or trust as the income of the
estate or trust which is taxable to the beneficiary under this part
and also taxed to the estate or trust in the other state bears to the
entire income of the estate or trust upon which the taxes paid to
the other state were imposed.
   (b) The credit shall not exceed such proportion of the tax payable
under this part as the income of the estate or trust which is
taxable to the beneficiary under this part and also taxed to the
estate or trust in the other state bears to the beneficiary's entire
income upon which the tax is imposed by this part.



18006.  For purposes of determining a credit under Section 18001
(relating to residents) or Section 18002 (relating to nonresidents),
both of the following apply:
   (a) A member of a partnership is allowed to treat his, her, or its
pro rata share of net income taxes paid to another state by the
partnership as if those taxes had been paid directly by the partner.
   (b) (1) A shareholder of a corporation that is an S corporation
under Chapter 4.5 (commencing with Section 23800) of Part 11 is
allowed to treat his or her pro rata share of net income taxes paid
to another state by the S corporation as if those taxes had been paid
by the shareholder.
   (2) This subdivision applies only if either of the following
requirements is met:
   (A) The state imposing the tax does not allow corporations to
elect to be treated as an S corporation.
   (B) The state imposes a tax on S corporations and the corporation
referred to in paragraph (1) has elected to be treated as an S
corporation in the other state.



18007.  If any taxes paid to another state for which a taxpayer has
been allowed a credit under this chapter are at any time credited or
refunded to the taxpayer, the taxpayer shall immediately report that
fact to the Franchise Tax Board.


18008.  A tax equal to the credit allowed for the taxes credited or
refunded by the other state is due and payable from the taxpayer upon
notice and demand from the Franchise Tax Board.



18009.  Interest shall be assessed, collected and paid in the same
manner as the tax at the adjusted annual rate established pursuant to
Section 19521 from the date the credit was allowed under this part
to the date of payment.


18011.  The credit against the taxes imposed by this part for net
income taxes paid to another state shall not be allowed to any
taxpayer or any class of taxpayers if the allowance of the credit
will result in an invalid or illegal discrimination against another
taxpayer or another class of taxpayers.