Were any reforms enacted for incentive stock option alternative minimum tax by California?
September 30, 2011
Date: 2 Feb 2009
Your web site was GREAT/helpful for explaining the 2008 ISO AMT change enacted by Congress!
Were any similar reforms enacted for ISO/AMT by the State of California.
Date: 5 Feb 2009
No. California has not conformed to these changes and, considering its financial condition, I don’t expect California to conform. Unused minimum tax credits aren’t as big of a problem for California because the regular tax rate for the sale of stock (9.3%) is greater than the AMT rate (7%). There is still a problem when a huge value at the time an incentive stock option is exercised is erased by a declining stock market.