BILL NUMBER: AB 135	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Houston
   (Coauthor: Assembly Member Galgiani)

                        JANUARY 16, 2007

   An act to add Sections 17276.9 and 24416.9 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 135, as introduced, Houston. Income and corporation taxes: net
operating losses.
   The Personal Income Tax Law and the Corporation Tax Law, in
modified conformity to federal income tax laws, allow a deduction for
specified percentages of net operating losses, and, in general,
those losses are allowed as a carryover to specified numbers of years
following the taxable year of the loss.
   This bill, for taxable years beginning on and after January 1,
2007, would allow a net operating loss to be a carryover to each of
the 20 years following the taxable year of the loss, as provided.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17276.9 is added to the Revenue and Taxation
Code, to read:
   17276.9.  Notwithstanding Sections 17276 to 17276.7, inclusive, or
any other law to the contrary, any net operating loss attributable
to any taxable year beginning on or after January 1, 2007, shall be a
net operating loss carryover to each of the 20 taxable years
following the taxable year of loss.
  SEC. 2.  Section 24416.9 is added to the Revenue and Taxation Code,
to read:
   24416.9.  Notwithstanding Sections 24416 to 24416.7, inclusive, or
any other law to the contrary, any net operating loss attributable
to any taxable year beginning on or after January 1, 2007, shall be a
net operating loss carryover to each of the 20 taxable years
following the taxable year of loss.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.