What is the discount from tax liability?
A discount from tax liability is available for businesses with less than $900,000 in total revenue, annualized per 12 month period on which the tax is based. When the accounting period upon which the franchise tax report is based is more or less than 12 months, a taxable entity must annualize its total revenue to determine its discount percentage. The discount, which reduces the amount of tax due, is a percentage of the calculated tax due. The discount percentages, based on total revenue, are: 80% of tax due for total revenue greater than $300,000 and less than $400,000; 60% of tax due for total revenue greater than or equal to $400,000 and less than $500,000; 40% of tax due for total revenue greater than or equal to $500,000 and less than $700,000; 20% of tax due for total revenue greater than or equal to $700,000 and less than $900,000.
For franchise tax reports originally due on or after January 1, 2008 and before January 1, 2010, a discount from tax liability is available for businesses with less than $900,000 in total revenue, annualized per 12 month period on which the tax is based. When the accounting period upon which the franchise tax report is based is more or less than 12 months, a taxable entity must annualize its total revenue to determine its discount percentage. The discount, which reduces the amount of tax due, is a percentage of the calculated tax due. The discount percentages, based on total revenue, are: 80% of tax due for total revenue greater than $300,000 and less than $400,000; 60% of tax due for total revenue greater than or equal to $400,000 and less than $500,000; 40% of tax due for total revenue greater than or equal to $500,000 and less than $700,000; 20% of tax due for total revenue greater than or equal to $700,000 and less than $900,000. For franchise tax reports originally due on or after
