Today's Law As Amended

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SB-35 Income and corporation taxes: deductions: disaster relief.(2015-2016)



SECTION 1.
 The Legislature finds and declares:
(a) On August 24, 2014, the Governor of California proclaimed a state of emergency due to the South Napa Earthquake that occurred in August 2014, within the Counties of Napa, Solano, and Sonoma, thus qualifying affected persons for various forms of governmental assistance and relief.
(b) On September 11, 2014, the President of the United States made a Major Disaster Declaration for the Counties of Napa and Solano due to the South Napa Earthquake, thus qualifying affected persons to file an amended return to deduct a disaster loss in the taxable year prior to the loss year.
(c) This act is consistent with, and supplements, the proclaimed disaster assistance and relief by providing necessary tax relief to persons in the affected jurisdictions by allowing them to maintain essential basic services and repair damage to, and restore, their homes and businesses.
(d) The Legislature has enacted identical treatment for almost every significant disaster that has occurred in California for the last 25 years.

SEC. 2.

 Section 17207.14 is added to the Revenue and Taxation Code, to read:

17207.14.
 (a) For taxable years beginning on or after January 1, 2014, and before January 1, 2024, Section 165(i) of the Internal Revenue Code, relating to disaster losses, shall be applicable to any loss sustained as a result of any disaster occurring in any city, county, or city and county in this state that is proclaimed by the Governor to be in a state of emergency.
(b) (1) For losses described in subdivision (a), the election under Section 165(i) of the Internal Revenue Code, relating to disaster losses, may be made on a return or amended return filed on or before the due date of the return, determined with regard to any extension of time for filing the return, for the taxable year in which the disaster occurred.
(2) Notwithstanding Section 18572, this subdivision shall apply to any loss described in subdivision (a).
(c) Unless specifically provided otherwise, any law, other than Section 17276.20, that suspends, defers, reduces, or otherwise diminishes the deduction of a net operating loss shall not apply to a net operating loss attributable to the loss described in subdivision (a).
(d) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.

SEC. 3.

 Section 24347.14 is added to the Revenue and Taxation Code, to read:

24347.14.
 (a) For taxable years beginning on or after January 1, 2014, and before January 1, 2024, Section 165(i) of the Internal Revenue Code, relating to disaster losses, shall be applicable to any loss sustained as a result of any disaster occurring in any city, county, or city and county in this state that is proclaimed by the Governor to be in a state of emergency.
(b) (1) For losses described in subdivision (a), the election under Section 165(i) of the Internal Revenue Code, relating to disaster losses, may be made on a return or amended return filed on or before the due date of the return, determined with regard to any extension of time for filing the return, for the taxable year in which the disaster occurred.
(2) Notwithstanding Section 18572, this subdivision shall apply to any loss described in subdivision (a).
(c) Unless specifically provided otherwise, any law, other than Section 24416.20, that suspends, defers, reduces, or otherwise diminishes the deduction of a net operating loss shall not apply to a net operating loss attributable to the loss described in subdivision (a).
(d) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
SEC. 4.
 The Legislature finds and declares that this act fulfills a statewide public purpose because it is consistent with, and supplements, the proclaimed disaster assistance and relief by providing necessary tax relief to persons in the affected jurisdictions by allowing them to maintain essential basic services and repair damage to, and restore, their homes and businesses.
SEC. 5.
 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.