California – Budget Includes Major Revenue Raisers and Other State Tax Law Changes

CA budget bill makes tax law changes, suspension of net operating loss deduction, and $5 million cap on business tax credit

As part of the 2020-21 California State budget, where the state’s fiscal year begins July 1, the Legislature passed and Governor Newsom is expected to sign AB 85 (Committee on Budget), which makes numerous tax law changes, including suspension of the net operating loss deduction and a $5 million cap on the use of business tax credits for three years.

The following is a review of the provisions of AB 85, based upon the just over two dozen sections of the bill.

For more Information: California Globe

california globe
by Chris Micheli
June 16, 2020