California legislature approves NOL suspension and tax credit restrictions
Facing a projected $54 billion budget deficit, California Governor Gavin Newsom was forced to go back to the budget drawing board.
Facing a projected $54 billion budget deficit, California Governor Gavin Newsom was forced to go back to the budget drawing board. In an effort to close the deficit gap, Governor Newson revised his initial fiscal year 2020-2021 budget proposal to include familiar, yet for many taxpayers unwelcome, tax provisions.
Notably, the revised budget’s tax proposals suspend the use of net operating loss carryforwards (“NOLs”) entirely for taxpayers with net business income of $1 million or more, and limits the use of certain business tax credits to $5 million total for 2020, 2021, and 2022. A.B. 85 also contains a number of other provisions governing a wide range of areas, including sales tax on used vehicles and a strategic aircraft credit.
Discover more: California Legislature Approves NOL Suspension and Tax Credit Restrictions
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