(a)

(1) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, a qualified entity doing business in this state, as defined in

Section 23101, and that is required to file a return under

Section 18633, 18633.5, or subdivision (

a) of

Section 18601, may elect to annually pay an elective tax according to or measured by its qualified net income, defined in paragraph (2), computed at the rate of 9.3 percent for the taxable year for which the election is made.

(2) For purposes of this section, the “qualified net income” of a qualified entity means the sum of the pro rata share or distributive share of income, and any guaranteed payments, as described by

Section 707(

c) of the Internal Revenue Code, relating to guaranteed payments, subject to tax under

Part 10 (commencing with

Section 17001) for the taxable year of each qualified taxpayer, as defined in

Section 17052.10. (b)

(1) The elective tax authorized by this part shall be in addition to, and not in place of, any other tax or fee required to be paid under

Part 10 (commencing with

Section 17001) or

Part 11 (commencing with

Section 23001).

(2) The elective tax described in this part shall be assessed and collected under

Part 10.2 (commencing with

Section 18401).

(3) Unless the context otherwise requires, the

definitions set forth in this part and those in

Part 10 (commencing with

Section 17001),

Part 10.2 (commencing with

Section 18401), or

Part 11 (commencing with

Section 23001) shall apply. (c)

(1) The qualified entity may include in its qualified net income the pro rata share or distributive share of the income of any of its partners, shareholders, or members upon their consent. A partner, shareholder, or member that does not consent does not prevent the qualified entity from making an election to pay the elective tax.

(2) All partners, shareholders, and members of the qualified entity shall be bound by the election made under this part for the taxable year. (

d) The election shall be irrevocable and shall be made on an original, timely filed return required under

Part 10.2 (commencing with

Section 18401) for the taxable year of the election in the form and manner as prescribed by the Franchise Tax Board. (

e) The amendments made to this

section by

Section of

Chapter of the Statutes of shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.