California 2019-2020 Regular Session Status: Passed Senate

SB 254 — Personal income taxes: corporation taxes: transfer of tax losses.

Last action — From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws, including a deduction for net operating losses, which may be carried back for 20 taxable years preceding the taxable year of the loss, as specified. The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define "gross income" for purposes of computing taxable income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. This bill would allow a taxpayer under either the Personal Income Tax Law or the Corporation Tax Law to transfer any tax loss, as defined, to an unrelated party, as provided. The bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would provide for an additional exclusion from the taxpayer's "gross income" under both of those laws any amount received by a taxpayer in exchange for a tax loss transferred under this bill if the taxpayer invests that amount in an affordable housing project or a corporation, partnership, or limited liability company that is engaged in providing affordable housing, as provided, within 180 days of receipt. The bill would authorize the Franchise Tax Board to adopt regulations to implement these provisions and exempt those regulations from the rulemaking provisions of the Administrative Procedure Act. Existing law requires a bill that would authorize a new tax expenditure, as defined, under the Personal Income Tax Law or the Corporation Tax Law, or an exemption from the taxes imposed by the Sales and Use Tax Law to contain specific goals, purposes, and objectives that the tax expenditure will achieve and detailed performance indicators and data collection requirements for determining whether the new credit achieves these goals, purposes, and objectives. This bill would make findings specifying the goals, purposes, and objectives of the exclusions from "gross income" allowed by the bill will achieve and detailed performance indicators and data collection requirements for determining whether those exclusions achieve these goals, purposes, and objectives.

Bill Text

Action History

  1. From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

  2. Referred to Com. on REV. & TAX.

  3. In Assembly. Read first time. Held at Desk.

  4. Read third time. Passed. (Ayes 39. Noes 0. Page 3152.) Ordered to the Assembly.

  5. Read second time. Ordered to third reading.

  6. From committee: Do pass. (Ayes 7. Noes 0. Page 3141.) (January 23).

  7. Set for hearing January 23.

  8. (Corrected January 6).

  9. From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

  10. May 16 hearing: Held in committee and under submission.

  11. Set for hearing May 16.

  12. May 13 hearing: Placed on APPR. suspense file.

  13. Set for hearing May 13.

  14. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3. Page 850.) (April 24). Re-referred to Com. on APPR.

  15. Set for hearing April 24.

  16. From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.

  17. Referred to Com. on INS.

  18. From printer. May be acted upon on or after March 14.

  19. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Hertzberg · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 1 voted No

Sponsors (1)

  • Hertzberg

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

3rd Reading

Passed 39 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 26000
Democratic 10000
Republican 3000
Total 39000
% of votes cast 100%0%0%0%
How each member voted (39)
Member Party Vote
Rubio — Yea
Monning — Yea
Wieckowski — Yea
Mitchell — Yea
Bradford — Yea
Wilk — Yea
Beall — Yea
Atkins — Yea
Hill — Yea
Roth — Yea
Morrell — Yea
Hueso — Yea
Leyva — Yea
Dodd — Yea
Moorlach — Yea
Skinner — Yea
Allen — Yea
Borgeas — Yea
Galgiani — Yea
Hertzberg — Yea
Portantino — Yea
Bates — Yea
Glazer — Yea
Nielsen — Yea
Chang — Yea
Pan — Yea
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 1000
Unaffiliated 5000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Wieckowski — Yea
Portantino — Yea
Bates — Yea
Hill — Yea
Bradford — Yea
Durazo, Maria Elena Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Placed on suspense file

Passed 6 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 1000
Unaffiliated 5000
Total 6000
% of votes cast 100%0%0%0%
How each member voted (6)
Member Party Vote
Wieckowski — Yea
Portantino — Yea
Bates — Yea
Hill — Yea
Bradford — Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass, but first be re-referred to the Committee on [Appropriations]

Passed 7 Yea · 3 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 6203
Democratic 1000
Republican 0100
Total 7303
% of votes cast 54%23%0%23%
How each member voted (13)
Member Party Vote
Dodd — Yea
Rubio — Yea
Portantino — Yea
Roth — Yea
Glazer — Yea
Hueso — Yea
Moorlach — Nay
Bates — Nay
Borgeas — Not Voting
Galgiani — Not Voting
Mitchell — Not Voting
Archuleta, Bob Democratic Yea
Jones, Brian W. Republican Nay

Official roll call →

Subjects

taxation housing
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Frequently asked questions

What does SB 254 do?
The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws, including a deduction for net operating losses, which may be carried back for 20 taxable years preceding the taxable year of the loss, as specified. The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define "gross income" for purposes of computing taxable income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. This bill would allow a taxpayer under either the Personal Income Tax Law or the Corporation Tax Law to transfer any tax loss, as defined, to an unrelated party, as provided. The bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would provide for an additional exclusion from the taxpayer's "gross income" under both of those laws any amount received by a taxpayer in exchange for a tax loss transferred under this bill if the taxpayer invests that amount in an affordable housing project or a corporation, partnership, or limited liability company that is engaged in providing affordable housing, as provided, within 180 days of receipt. The bill would authorize the Franchise Tax Board to adopt regulations to implement these provisions and exempt those regulations from the rulemaking provisions of the Administrative Procedure Act. Existing law requires a bill that would authorize a new tax expenditure, as defined, under the Personal Income Tax Law or the Corporation Tax Law, or an exemption from the taxes imposed by the Sales and Use Tax Law to contain specific goals, purposes, and objectives that the tax expenditure will achieve and detailed performance indicators and data collection requirements for determining whether the new credit achieves these goals, purposes, and objectives. This bill would make findings specifying the goals, purposes, and objectives of the exclusions from "gross income" allowed by the bill will achieve and detailed performance indicators and data collection requirements for determining whether those exclusions achieve these goals, purposes, and objectives.
Who sponsors SB 254?
SB 254 is sponsored by Hertzberg.
What is the current status of SB 254?
This bill died with 2019-2020 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 254?
Track SB 254 free on One Click Politics — get push/email alerts when it moves.

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