Details of Public Law 117-169, section 13903 , Extension of Limitation on Excess Business Losses of Noncorporate Taxpayers

Under the PITL and CTL, California conforms to IRC section 461 as of the specified date of 1/1/2015, with modifications. California has modified conformity to IRC section 461(l), relating to limitation on excess business losses on noncorporate taxpayers, for taxable years beginning after 12/31/2018. For California purposes, losses are treated as an excess business loss carryover to the following taxable year as opposed to a net operating loss carryover under IRC section 172.