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Overview. If your deductions and losses are greater than your income from all sources in a tax year, you may have a net operating loss (NOL). You may be able to claim your loss as an NOL deduction. This deduction can be carried back to the past 2 years and/or you can carry it forward to future tax years.
AB 85 suspended use of NOLs for tax years 2020-2022 for taxpayers with California taxable income of at least $1 million. That bill also limited the use of business tax credits, such as research-and-development credits, for tax years 2020-2022 to $5 million annually.
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