California Senate Bill No. 104 (SB 104), introduced January 5, 2021, would provide an elective entity level tax for pass-through entities (PTEs) doing business in the state. With SB 104’s introduction, California becomes one of the first states to move towards the enactment of a PTE tax after the IRS issued preliminary guidance in Notice 2020-75 (see our previous Insight), which generally confirms the federal deductibility of state PTE taxes. SB 104 currently is with the state Committee on Rules pending assignment and can be acted upon on or after February 5, 2021.
California Senate bill proposes pass-through entity tax
January 15th 2021 11:26 AM • By Shelley Giberson
Shelley Giberson
Partner
