AB 222

Bill Subjects

Abstract

Existing law, the Personal Income Tax Law and Corporation Tax Law, in modified conformity with federal income tax laws, generally allows various deductions in computing the income that is subject to taxes imposed by those laws, including a deduction for a net operating loss, as specified. Existing law suspends the deduction for a net operating loss, as specified, for taxable years beginning on or after January 1, 2020, and before January 1, 2023. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for taxable years beginning on and after January 1, 2023, would authorize a net operating loss carryback, as described, for a net operating loss or carryover of net operating loss for which a deduction was suspended as described above for a qualified taxpayer. The bill would define a "qualified taxpayer" as a taxpayer that was engaged in the business of owning, operating, or constructing active solar energy systems in the state and that completed a specified substantial sale of fixed assets or other property held or used in the regular course of their trade or business during the taxable year beginning on or after January 1, 2020, but before January 1, 2021. The bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.