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Author: anshul
California Carbon Capture Credits: Tax Benefits for Startups
As California moves aggressively toward net-zero emissions, it’s offering new carbon capture tax credits to incentivize innovation in climate tech, AI-powered emission tracking, and carbon removal. These credits are modeled partly after IRC §45Q (Federal Carbon Capture Credit), but offer additional state-level tax relief for companies based in California. If you’re involved in carbon sequestration, […]
California Gross Premiums Tax on AI InsurTech Startups
As AI-powered InsurTech startups continue to scale across California, many are entering regulated insurance business models issuing digital policies, underwriting risk through licensed carriers, or acting as MGAs. But one California-specific tax often gets missed in early planning: the Gross Premiums Tax (GPT) under California Constitution Article XIII, Section 28. Unlike income tax, this tax […]
Stock-for-Stock Reorgs: California Franchise Tax Surprises
When your startup undergoes a stock-for-stock reorganization, the focus is usually on federal tax deferral under IRC §368(a)(1)(B) but if your company operates in California, the Franchise Tax Board (FTB) may have a different take. Many founders, CFOs, and legal teams overlook the state-level tax implications of stock swaps, especially when: Entities involved are incorporated […]
Installment Sales of Startup Equity: Watch for California PIT Interest Charges
Installment Sales of Startup Equity Founders and early investors often choose to sell their startup equity through an installment sale deferring recognition of capital gains over time. While this strategy can help with cash flow and tax planning, many forget one important twist: California may charge interest on the deferred income, even if the IRS […]
IPO Readiness: California Tax Questions VCs Will Ask You
If you’re a California-based startup getting ready for a Series C or pre-IPO round , one thing is guaranteed your investors will ask tax questions. Not just federal ones. They’ll want to know your California compliance status, especially if you’ve got deferred compensation, unfiled franchise tax reports, or unclean trust/equity structures. Whether you’re working with […]
CA NOL Suspension : Coming Back?
California startups and high-income founders were hit hard when the Net Operating Loss (NOL) deduction was suspended under AB 85 during pandemic-era budgets. With 2025 underway, many are asking: Will California reinstate NOL usage, or will suspensions continue? Let’s decode what’s happening, what to prepare for, and how to preserve your NOL carryforwards while staying […]
EV Credits for CA Robotics Delivery Fleets
EV Credits for CA Robotics Delivery Fleets With California pushing for zero-emission last-mile delivery, startups deploying autonomous EV fleets including robots, e-bikes, and electric vans may now qualify for generous state-level tax credits . This blog breaks down what California EV incentives are available, how your robotics or AI startup can benefit, and how to […]
Public Utility Tax on SaaS Subscriptions: Does It Apply in California?
As more SaaS startups scale in California, founders are facing unexpected tax classifications especially when their platforms involve communications, data transmission, or streaming. One area drawing scrutiny is whether SaaS services are subject to Public Utility Tax (PUT) under California’s rules or local ordinances. Although California doesn’t impose a state-level sales tax on most SaaS […]
§163(j) Interest Limitation: Where Does CA Stand? Startups, VC funds, and real estate ventures often rely heavily on borrowed capital. But the §163(j) interest deduction limitation can be a major curveball especially when state conformity rules like California’s don’t line up with the federal rules. Let’s walk through how California treats interest expense under §163(j) […]
California VCP: Fix Unclaimed Property Issues Before Audit Hits
If you’ve never filed a Holder Notice Report in California or just received a letter from the State Controller’s Office, there’s a limited-time way to protect your business: the Voluntary Compliance Program (VCP). This program is a lifeline for startups and founders who want to fix past non-compliance related to unclaimed property without facing harsh […]