AB 2754 Summary

• Includes GO-Biz California Competes Credit in the order of credits allowed against net tax for taxable years beginning January 1, 2014, and allows it to reduce tentative minimum tax under both Personal Income Tax Law and Corporation Tax Law.

• Requires taxpayers to include the tax identification number of dependents on returns for taxable years beginning January 1, 2015; allows credits or refunds for omitted identification numbers within standard refund periods.

• Requires business entities that prepare acceptable returns using tax preparation software to file electronically starting January 1, 2014, with penalties of $100 for initial failure and $500 for subsequent failures applying to returns filed for taxable years beginning January 1, 2017 (waivable for reasonable cause).

• Modifies federal law treatment of charitable remainder annuity trusts and charitable remainder unitrusts for taxable years beginning January 1, 2014, allowing them to remain tax-exempt while subjecting unrelated business taxable income to tax under Section 17651.

• Requires the Franchise Tax Board to conduct education programs on electronic filing requirements and liberally grant waivers to minimize adverse impacts on business entities experiencing compliance difficulties.