Income taxes: net operating losses: carrybacks: overpayments: estimated tax.

The Personal Income Tax Law and the Corporation Tax Law, in modified conformity to federal law, allow taxpayers to utilize net operating losses and carryovers and carrybacks of those losses for purposes of offsetting their tax liabilities. Existing law allows net operating losses attributable to taxable years beginning on or after January 1, 2013, to be carrybacks to each of the preceding 2 taxable years, as provided. Existing law allows for a credit against estimated tax of an overpayment of tax for a preceding year. Federal income tax law includes provisions that allow a taxpayer to file an application for a tentative carryback adjustment of the tax for the prior taxable year affected by a net operating loss carryback, as provided. This bill would additionally conform to those federal provisions, as provided, but would allow for the suspension of the tentative carryback and refund adjustments pursuant to a proclamation issued by the Governor, as described.