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Changes to 2011 Forms

Updates to the Schedule P (540 NR) on 02/07/2013 –– Alternative Minimum Tax and Credit Limitations - Nonresidents and Part-Year Residents

We replaced text on:

  1. Side 1, Line 13i
  2. Side 2, Line 29o

Previous Version

Qualified small business stock

Revised Version

Pollution control facilities

Reason for the changes

The Court of Appeal’s held in Cutler v. Franchise Tax Board (2012) 208 Cal. App. 4th 1247, that the qualified small business stock exclusion and deferral statutes under California Revenue and Taxation Code (R&TC) Sections 18152.5 and 18038.5 are unconstitutional. These sections are now invalid and unenforceable.

The Pollution control facilities adjustment line was erroneously deleted in the 2011 tax year and is therefore, being added back this year.


This revision increases the tax liability for taxpayers who reported a qualified small business stock exclusion or deferral for taxable years beginning on or after January 1, 2008.

By adding back the Pollution control facilities adjustment, the tax liability for taxpayers may increase.

Back to Tax Form Changes for 2011