Project Description

California has reinstated the small business stock exclusion for 2008-2012 in the wake of the Cutler decision that ruled California’s previous version of the exclusion was unconstitutional. The “new” California small business stock exclusion does away with the requirement that 80% or more of a company’s payroll and property are in California for substantially all of the taxpayer’s holding period. Under the new version, the requirement is that 80% or more of the company’s payroll are in California at the time of the stock’s issuance. See the FTB FAQs Page on the new legislation.