19340.
Interest shall be allowed and paid on any overpayment in respect of any tax, at the adjusted annual rate established pursuant to Section 19521 as follows:(a) In the case of a credit, from the date of the overpayment to the due date of the amount for which the credit is allowed. Any interest allowed on any credit shall first be credited on any amounts due from the taxpayer under Part 10 (commencing with Section 17001), this part, or Part 11 (commencing with Section 23001).
(b) In the case of a refund, including a refund in excess of tax liability as prescribed in subdivision (j) of Section 17053.5, from the
date of the overpayment to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the Franchise Tax Board.
(c) For purposes of this section, if any overpayment of the “net tax” imposed under Part 10 (commencing with Section 17001) or the “tax” imposed under Part 11 (commencing with Section 23001) results from a net operating loss carryback allowed under subdivision (c) of Section 17276 or subdivision (d) of Section 24416, that overpayment shall not be deemed to have been made before the filing date for the taxable year in which that net operating loss carryback arises.
(d) (1) For purposes of subdivision (c), the term “filing date” means the last date prescribed for filing the return of
the “net tax” imposed under Part 10 (commencing with Section 17001) or the “tax” imposed under Part 11 (commencing with Section 23001) for the taxable year, determined without regard to extensions.
(2) (A) For purposes of Section 19341, the following shall apply:
(i) Any overpayment described in subdivision (c) shall be treated as an overpayment for the loss year.
(ii) Subdivision (c) shall be applied with respect to the overpayment by treating the return for the loss year as not filed before a claim for that overpayment is filed.
(B) For purposes of this paragraph, the term “loss year” means the
taxable year in which the net operating loss arises.
(3) For purposes of clause (ii) of subparagraph (A), if a taxpayer files a claim for refund of any overpayment described in subdivision (c) with respect to the taxable year to which a loss or credit is carried back, and subsequently files an application under Section 19307.5 with respect to that overpayment, then the claim for overpayment shall be treated as having been filed on the date the application under Section 19307.5 was filed.
(e) The amendments made to this section by the act adding this subdivision shall apply on or after January 1, 2019.