CA AB2254

Allows California residents to claim a credit for net income taxes paid to Texas when calculated using the Cost of Goods Sold Method under the Revised Texas Franchise Tax for taxable years 2020-2024.

Credits apply to taxes paid by S corporations that are calculated using the Cost of Goods Sold Method as specified in Texas Tax Code Section 171.101(B)(ii)(a)(1), relating to determination of taxable margin.

Includes the taxpayer's pro rata share of taxes paid by an S corporation in the calculation of "net income taxes" paid to another state for credit purposes.

Requires the Franchise Tax Board to provide biannual reports to the Legislature detailing the amount of credits claimed by state for taxable years, with reports covering 2009-2015, 2016-2019, and continuing biennially from 2020 forward.

Takes effect immediately as a tax levy.