What corporations are not subject to the franchise tax phase-out?
The franchise tax phase-out and CAT phase-in do not apply to the following entities: (i) financial institutions, (ii) financial holding companies, (iii) bank holding companies, (iv) savings and loan holding companies, (v) affiliates of entities described in (i) through (iv) above when engaged in financial institution-type activities, (vi) certain affiliates of insurance companies when engaged in insurance-type activities and (vii) “securitization” companies described in R.C. 5751.01(E)(10).
The following corporations remain subject to the franchise tax after the phase-out: (i) financial holding companies; (ii) bank holding companies; (iii) savings and loan holding companies; (iv) corporations directly or indirectly owned by one or more corporations described in (i) through (iii) when such subsidiary corporations are engaged in activities permissible for a financial holding company, (v) corporations directly or indirectly owned by one or more financial institutions that pay the franchise tax charged by R.C. 5733.06(D) when such subsidiary corporations are engaged in activities permissible for a financial holding company and such corporations are not already described in (iv) above, (vi) corporations directly or indirectly owned by one or more insurance companies when such subsidiary corporations are engaged in insurance-type activities, and (vii) “securitization ” companies described in R.C. 5751.01(E)(10). See R.C. 5733.01(G) and 5751.01(E).
