(a) Notwithstanding any provision in this part to the contrary, for the purposes of computing tax credits, the term ânet taxâ means the tax imposed under either Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to lump-sum distributions) less the credits allowed by Section 17054 (relating to personal exemption credits) and any amount imposed under paragraph (1) of subdivision (d) and paragraph (1) of subdivision (e) of Section 17560. Notwithstanding the preceding sentence, the ânet taxâ shall not be less than the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions), if any. Credits shall be allowed against ânet taxâ in the following order: (1) Credits that do not contain carryover or refundable provisions, except those described in paragraphs (4) and (5). (2) Credits that contain carryover provisions but do not contain refundable provisions, except for those that are allowed to reduce ânet taxâ below the tentative minimum tax, as defined by Section 17062. (3) Credits that contain both carryover and refundable provisions, except the credit described in paragraph (9). (4) The minimum tax credit allowed by Section 17063 (relating to the alternative minimum tax). (5) (A) For taxable years beginning on or after January 1, 2002, and before January 1, 2022, credits that are allowed to reduce ânet taxâ below the tentative minimum tax, as defined by Section 17062. (B) For taxable years beginning on or after January 1, 2022, credits that are allowed to reduce ânet taxâ below the tentative minimum tax, as defined by Section 17062, except the credit described in paragraph (7) and the credit described in paragraph (9). (6) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001). (7) For taxable years beginning on or after January 1, 2022, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act). (8) For taxable years beginning on or after January 1, 2026, the credit allowed by Section 17052.11 (relating to the elective tax under the Small Business Relief Act). (9) Credits that contain refundable provisions but do not contain carryover provisions. (10) For taxable years beginning on or after January 1, 2025, the credit allowed by Section 17053.98.1. (11) For taxable years beginning on or after January 1, 2027, the credit allowed by Section 17039.5. (12) The credits provided by Sections 17061 (relating to refunds pursuant to the Unemployment Insurance Code) and 19002 (relating to tax withholding). (b) The order within each paragraph of subdivision (a) shall be determined by the Franchise Tax Board. (c) (1) Notwithstanding any other provision of this part, no tax credit shall reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits: (A) The credit allowed by former Section 17052.2 (relating to teacher retention tax credit, repealed on August 24, 2007). (B) The credit allowed by former Section 17052.4 (relating to solar energy, repealed on December 1, 1989). (C) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on January 1, 1987). (D) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on December 1, 1994). (E) The credit allowed by Section 17052.12 (relating to research expenses). (F) The credit allowed by former Section 17052.13 (relating to sales and use tax credit, repealed on January 1, 1997). (G) The credit allowed by former Section 17052.15 (relating to Los Angeles Revitalization Zone sales tax credit, repealed on December 1, 1998). (H) The credit allowed by Section 17052.25 (relating to the adoption costs credit). (I) The credit allowed by Section 17053.5 (relating to the renterâs credit). (J) The credit allowed by former Sect
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