CA AB308

Extends exemptions from minimum franchise tax and annual tax for corporations and limited liability companies that are small businesses solely owned by deployed members of the United States Armed Forces for taxable years beginning January 1, 2020 through December 31, 2029.

Qualifies for exemption when the business owner is deployed during a period of combat or homeland defense (as specified by Presidential Executive order) and the business operates at a loss or ceases operation.

Defines "small business" as having total income of $250,000 or less, and excludes temporary duty for training/processing and permanent changes of station from the definition of "deployed."

Requires the Franchise Tax Board to submit annual reports to the Legislature from January 1, 2021 through January 1, 2031 on the number of qualifying businesses, employees, and closures.

Takes effect immediately as a tax levy.