Assembly Bill 91 increased the average annual gross receipts threshold for exemption from UNICAP provisions to what amount?

Assembly Bill 91 was significant in updating the financial parameters relevant to taxpayers under the UNICAP (Uniform Capitalization Rules). The law raised the average annual gross receipts threshold from $10 million to $25 million. This adjustment allows more businesses to qualify for the exemption from the UNICAP provisions, thereby simplifying their accounting processes and potentially reducing their overall tax burden.

The change reflects an effort to provide relief to smaller businesses that may not have the resources to manage the complexities that come with UNICAP compliance. This threshold enables businesses with gross receipts under $25 million to sidestep the capitalization requirements that would ordinarily apply to larger organizations. As a result, the bulk of smaller entities can operate without the additional administrative and financial burdens imposed by these regulations.