Do You Need To Make a California Passthrough Election (PTE) In June?

The California PTE credit is extended from 2026-2032.

Starting 2026, entities that do not make the required PTE June 15 prepayment (including payments that are less than the required payment) would still be able to make the election, but the amount of credit would be reduced by 12.5%. 

Since the PTE credit is based on a 9.3% tax rate, the reduced credit basically means the effective tax rate used is 8.1375%.