Income taxation: deductions: net operating loss carrybacks.

The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws. Existing law allows a deduction for specified net operating losses, including allowing net operating loss carrybacks attributable to taxable years beginning on or after January 1, 2011. This bill would disallow the use of net operating loss carrybacks by individual and corporate taxpayers. This bill would result in a change in state taxes for the purpose of increasing state revenues within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.