Bill > AB2408

This bill amends California's Revenue and Taxation Code to modify rules regarding net operating loss (NOL) deductions, which allow businesses to offset current income with losses from previous years. Key provisions include changes to how much of an NOL can be carried forward and for how long, with specific rules for "new businesses" and "eligible small businesses" (businesses with less than $1 million in gross receipts). The bill also introduces a temporary suspension of NOL deductions for certain taxable years between 2008 and 2012, with exceptions for businesses below specific income thresholds, and extends the carryover period for NOLs incurred during this period. Additionally, it clarifies definitions for "new business" and "eligible small business" and makes minor technical corrections, such as changing "splitups" to "split-ups" for clarity. The act takes effect immediately as a tax levy.