Section 24416.23 - Suspension of net operating loss deduction(a) Notwithstanding Sections 24416, 24416.1, 24416.4, 24416.7, and 24416.22, former Sections 24416.2, 24416.5, 24416.6, and 24416.20, and Section 172 of the Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2022.(b) For any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows: (1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) The disallowance of any net operating loss deduction for any taxable year beginning on or after January 1, 2020, and before January 1, 2022, pursuant to subdivision (a) shall not apply to a taxpayer with income subject to tax under this part of less than one million dollars ($1,000,000) for the taxable year.(d) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.Ca. Rev. and Tax. Code § 24416.23
Amended by Stats 2022 ch 3 (SB 113),s 21, eff. 2/9/2022.Added by Stats 2020 ch 8 (AB 85),s 16, eff. 6/29/2020. See Stats 2022 ch 3 (SB 113), s 25.