Personal income taxes: credit for taxes paid.

The Personal Income Tax Law allows a credit against the net tax imposed by that law to residents for net income taxes paid to another state on income derived from sources within that state. This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would provide that the determination of whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used, as defined, to calculate the taxes paid by the taxpayer and without regard to other methods allowed by the other state. The bill would require the Franchise Tax Board to provide the Legislature with a biannual report regarding the credit, as provided. This bill would take effect immediately as a tax levy.