CA AB2544

Exempts limited liability companies (LLCs) that qualify as "qualified investment partnerships" from annual state taxes and fees for taxable years beginning before January 1, 2020.

Defines a "qualified investment partnership" as an LLC classified as a partnership for California income tax purposes where at least 90 percent of assets consist of qualifying investment securities, bank deposits, partnership interests, or necessary office equipment, and at least 90 percent of gross income comes from interest, dividends, and investment gains.

Requires qualified investment partnerships to file partnership returns under Section 18633 if required to file federal partnership returns, or file an information return as prescribed by the Franchise Tax Board if not federally required.

Takes effect immediately as a tax levy and is known as the Access to Angel Investors Act, intended to improve access to capital.

Maintains existing exemptions for LLCs exempt under Sections 23701h or 23701x and preserves special provisions for small businesses owned by deployed military members through January 1, 2018.