Rev. & Tax. Code, § 24416.1 · Article 2. Special Deductions
Rev. & Tax. Code, § 24416.1
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) A qualified taxpayer, as defined in Section 24416.4 or 24416.7, or Section 24416.2, 24416.5, or 24416.6, as those sections read on November 30, 2014, may elect to take the deduction provided by Section 172 of the Internal Revenue Code, relating to the net operating loss deduction, as modified by Section 24416, in computing net income under Section 24341, with the following exceptions to Section 24416:
(1) Subdivision (a) of Section 24416, relating to years in which allowable losses are sustained, shall not be applicable.
(2) Subdivision (b) of Section 24416, relating to the 50-percent reduction of losses, shall not be applicable.
(3) The provisions of subparagraphs (B) and (C) of Section 172(b)(1) of the Internal Revenue Code, relating to years to which loss may be carried, shall not apply. To the extent applicable to California law, net operating losses attributable to entities with losses described by Section 172(b)(1)(J) shall be applied in accordance with Section 172(b)(1)(A) and (B) of the Internal Revenue Code.
(b) Corporations whose income is subject to the provisions of Section 25101 or 25101.15 shall make the computations required by Section 25108.
(c) The election to compute the net operating loss under this section shall be made in a statement attached to the original return, timely filed for the year in which the net operating loss is incurred and shall be irrevocable. In addition to the exceptions specified in subdivision (a), Section 24416.4 or 24416.7, as appropriate, or Section 24416.2, 24416.5, or 24416.6, as those sections read on November 30, 2014, as appropriate, shall be applicable.
(d) Any carryover of a net operating loss sustained by a qualified taxpayer, as defined in subdivision (a) or (b) of Section 24416.2 as that section read immediately prior to January 1, 1997, shall, if previously elected, continue to be a deduction, as provided in subdivision (a), applied as if the provisions of subdivision (a) or (b) of Section 24416.2, as that section read prior to January 1, 1997, still applied.
Notes and commentary — not statutory text
History
Amended by Stats. 2026, Ch. 236, Sec. 37. (SB 1435) Effective September 14, 2026. Applicable to taxable years beginning on or after January 1, 2025, provided in Section 46\nof Stats. 2026, Ch. 236.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=24416.1.
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- sha256 503ef85ff47cf7dd48745a086a3c973250ea023071a1d01bf3b41bb880f24891
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- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Revenue and Taxation Code
- Rev. & Tax. Code, § 24341Printed as Section 24341
- Rev. & Tax. Code, § 24416Printed as Section 24416
- Rev. & Tax. Code, § 24416.4Printed as Section 24416.4 or 24416.7
- Rev. & Tax. Code, § 24416.7Printed as Section 24416.4 or 24416.7
- Rev. & Tax. Code, § 25101Printed as Section 25101 or 25101.15
- Rev. & Tax. Code, § 25101.15Printed as Section 25101 or 25101.15
- Rev. & Tax. Code, § 25108Printed as Section 25108
Cited by 11 provisions
Provisions in this library whose text cites Rev. & Tax. Code, § 24416.1. Each shows the citation as that text prints it.
Revenue and Taxation Code
- Rev. & Tax. Code, § 23802Printed as Section 24416 or 24416.1
- Rev. & Tax. Code, § 24416Printed as Sections 24416.1, 24416.4, and 24416.7
- Rev. & Tax. Code, § 24416.3Printed as Sections 24416, 24416.1, 24416.4, and 24416.7
- Rev. & Tax. Code, § 24416.4Printed as Section 24416.1
- Rev. & Tax. Code, § 24416.7Printed as Section 24416.1
- Rev. & Tax. Code, § 24416.21Printed as Sections 24416, 24416.1, 24416.4, and 24416.7
- Rev. & Tax. Code, § 24416.22Printed as Section 24416.1, 24416.4, or 22416.7
- Rev. & Tax. Code, § 24416.23Printed as Sections 24416, 24416.1, 24416.4, 24416.7, and 24416.22
- Rev. & Tax. Code, § 24416.24Printed as Sections 24416, 24416.1, 24416.4, 24416.7, and 24416.22
- Rev. & Tax. Code, § 24871Printed as Sections 24416 and 24416.1
- Rev. & Tax. Code, § 25108Printed as Sections 24416, 24416.1, and 24416.2
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.