AB 2466 Summary

• Reduces the minimum franchise tax to $99 annually for new veteran-owned small businesses (corporations and limited liability companies) for taxable years beginning January 1, 2015 through December 31, 2017.

• Eliminates the $99 tax for veteran-owned small businesses that operate at a loss or cease operations during the three-year period.

• Defines "new veteran-owned small business" as a business formed on or after January 1, 2015 with total state income of $250,000 or less and more than 50% ownership by honorably discharged Armed Forces members.

• Excludes businesses that began operations in another business form (sole proprietorship, partnership, etc.) before reorganizing as a corporation or LLC, and bars reorganization solely to reduce taxes.

• Takes effect immediately as a tax levy.