CORPORATE MINIMUM TAX

Assembly Bill No. 10, enacted on July 6, 1999 exempts every corporation that incorporated in California, or qualifies to do business in the state of California on or after January 1, 2000, from the minimum prepaid franchise tax for its first and second taxable years. The act does not however, apply to limited partnerships, limited liability partnerships, limited liability companies, charitable organizations, regulated investment companies, real estate investment trusts, real estate mortgage investment conduits, financial asset securitization investment trusts, and qualified subchapter S subsidiaries.

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