News & Insights

Update: California Credits and NOL Deductions Reinstated for Years

Tax Development Feb 16, 2022

Update: California Credits and NOL Deductions Reinstated for Years

As an update to Ryan’s article California Single-Payor Healthcare Off the Table; NOL Deduction Back on the Table, both the California House of Representatives (HB 87) and the California Senate (SB 113) passed bills to restore business tax credits and net operating loss (NOL) deductions. On February 9, 2022, Governor Newsom signed SB 113. This legislation reestablishes taxpayers the ability to offset taxable income in excess of $5,000,000 with tax credits. The new law also restores a taxpayer’s entitlement to take an NOL deduction. Both of these provisions are effective as of January 1, 2022.

Please contact your Ryan representative to assist with the reinstatement of these new rules.


Mark L. Nachbar

Mary Bernard

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